The banking app “Dave,” backed by Dallas Mavericks owner Mark Cuban, began trading on Nasdaq Thursday after closing its announced merger with special purpose vehicle VPC Impact Acquisition Holdings III, Inc.
After the business combination was approved by VPCC shareholders earlier this week, VPCC changed its name to “Dave Inc” and now trades under the symbol DAVE.
|DAVE||VPC IMPACT ACQUISITION HOLDINGS III INC.||5.82||-2.71||-31.77%|
“We are very excited to work with VPCC and our new board of directors as we continue our mission to develop products that are financially level playing field,” said Dave Co-Founder and CEO Jason Wilk in a statement announcing the news. “This new inflow of capital will allow us to invest in our business and, in turn, help more people living from paycheck to paycheck that the traditional banking system did not support. We look forward to getting started. “
The deal included a $ 210 million private investment in public equity led by Tiger Global Management, with the participation of Wellington Management, Corbin Capital Partners and Alameda Research, Dave said in a press release.
Prior to his debut, Dave held an estimated value of around $ 4 billion. It opened on Thursday at $ 8.27 per share, which is worth around $ 3 billion.
Founded in 2017, Dave is a finance platform that offers a cheaper alternative to traditional banks that charges its 10 million customers a fee of $ 1 per month. It provides access to a checking account with overdraft protection of up to $ 100 and helps users build their credit, budget, and even find part-time jobs.
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“We believe the old financial system didn’t work and that more than 150 million people today need our help to build financial stability,” said Wilk in a statement in which he announced the company’s IPO plans in June.
“Dave is turning the banking industry upside down with our suite of breakthrough financial products, and is making a huge difference in the lives of our customers,” he continued. “This transaction and the continued support from our longstanding investors show confidence in our strategy, vision and the significant growth opportunities that lie ahead.”
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In addition to Cuban, Dave is supported by Norwest, Section 32, Capital One, The Kraft Group, SV Angel and The Chernin Group. The company’s board of directors includes Wilk, Cuban, Metromile CEO Dan Preston, Google Ventures founder Bill Maris and Parker Barrile of Norwest Venture Partners.
Lucas Manfredi from FOX Business contributed to this report.