Credit Mutuel Arkea enters sharing economy with acquisition of The Leetchi Group
22 September 2015 | 5313 views | 0
In the latest example of bank acquisition of innovative tech startups, Credit Mutuel Arkea has bought an 86% stake in online money management firm Leetchi Group and its payments processing subsidiary Mangopay.
The remaining 14% of the business will be retained by Céline Lazorthes, founder and CEO, and its existing management and the 40-person firm will retain its autonomy.
Founded in 2009, Leetchi has amassed four million customers for its online 'money pot' service, which enables users to collect and manage money for group gifts and events. The firm has raised more than EUR7 million in funding since its launch.
In 2013 it founded Mangopay, opening its London office in January 2015, to process payments for marketplaces and crowdfunding platforms. Today, Mangopay services more than 700 clients across 22 countries and is due to open new offices across Europe, beginning with Barcelona and Berlin.
Along with leetchi.com the group has processed over €100 million in 2014 and will aim to double this volume for 2015.
As part of the deal, the French bank will inject €10 million in growth capital into the Leetchi Group. The firm says it will use the funding to double its existing staff numbers over the next two years and accelerate product development for both brands.
Financial terms of the transaction were not disclosed, although the deal is understood to value the company at EUR50 million.