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Finance

Dave Appt to Go Public Through SPAC, Date and Price Explained

Dave SPAC merger valued at $4 billion.

Dave cofounder and CEO Jason Wilk announced the SPAC merger on June 7. The deal gives Dave a $4 billion valuation, which is quite a boost from the company’s 2019 valuation of $1 billion, according to PitchBook.

The actual date of the public offering and price range of shares haven’t been set yet. 

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VPC Impact Acquisition Holdings III is a blank-check company sponsored by global investment firm Victory Park Capital. VPC has been a longstanding investor in Dave. In January, it provided the company with a $100 million credit facility.

Dave plans to use the proceeds from the public listing to assist in its accelerated growth into new products and continued rapid scale of its banking platform.

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“Dave is upending the banking industry with our suite of breakthrough financial products and making a meaningful impact on our customers’ lives. This transaction and continued support from our longstanding investors signify confidence in our strategy, vision and the significant growth opportunities ahead,” Wilk said in a company statement.

The deal includes a contribution of about $254 million from the VPCC trust account and a $210 million private placement (PIPE) led by Tiger Global Management with additional participation from Wellington Management and Corbin Capital Partners.

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Dave is a disrupter in the banking industry.

Several investors, including billionaire investor and Shark Tank panel member Mark Cuban, put up a combined total of $3 million to get Dave started. 

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The financial platform now has 10 million customers using its features for banking, financial insights, overdraft protection, building credit, and even finding side gigs.

Dave officials estimate that the app has helped customers avoid nearly $1 billion in overdraft fees through its flagship feature, ExtraCash, and earn over $200 million in income through its gig-economy job board, Side Hustle.

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In December 2020, the company launched Dave Banking, a spending account and debit card with no monthly fees, which has already accumulated more than 1.3 million members.

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“At Dave, we’re committed to improving the financial health of our members,” said Wilk in a company statement. “We believe the legacy financial system has failed to deliver, and today, more than 150 million people need our help to build financial stability.”

According to the company’s June presentation to investors, Dave’s 2020 revenue of $122 million was 60 percent over the prior year. 

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View more information: https://marketrealist.com/p/dave-app-ipo-date-and-price/

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