Hazel, an independent fintech launched in partnership with Walmart and investment firm Ribbit Capital, has announced that it entered into definitive agreements to acquire fintech platforms Even and ONE.
The move deepens Walmart’s involvement in financial services and accords with its strategy to shift from strictly a value position in the market to one where it takes on a lifestyle orientation focused on underserved consumers.
The transactions, expected to close in the first half of 2022 pending approvals, give the combined business immediate momentum on its strategy to deliver a single financial services app that empowers consumers to get paid, spend, save, borrow and grow their money on the platform.
Hazel stated that millions of Americans today can’t access credit, build savings or wealth and are left to manage their financial lives through multiple disconnected apps. Almost a quarter of U.S. adults are unbanked or underbanked, so about 80% of fintech users rely on multiple accounts to manage their finances, the company asserted.
The combined business, operating under the brand name ONE, will provide users with a complete financial services app that helps them holistically manage their finances in one place, Hazel indicated. The company will offer its products and services directly to consumers and through employers and merchants including access to Walmart’s 1.6 million U.S. associates and 100 million-plus weekly shoppers.
Omer Ismail will lead the combined business as CEO of ONE while David Baga, CEO of Even, and Brian Hamilton, co-founder of ONE, will remain in key leadership positions, Hazel maintained. The combined business will have more than 200 employees and a capitalization of more than $250 million in cash on the balance sheet to fund future growth.
“Consumers everywhere are being left behind by the world of financial services,” said Omer Ismail, incoming CEO of ONE, in announcing the acquisitions. “Our vision is clear: build on Even and ONE’s success to offer a product that offers consumers the best way to spend, the best way to access their wages and helps millions save and grow their money. I’m looking forward to partnering with two stellar leaders in Brian and David to improve the financial lives of tens of millions of consumers.”
John Furner, president and CEO, Walmart U.S. and a board member of the combined business, said, “Walmart is constantly looking for new ways to deliver on our core mission of helping our customers save money and live better. Customers have made it clear that they want more from us in the financial services arena. Creating a simple, personalized app that allows users to manage their money in one place is the natural next step toward fulfilling that. We couldn’t be more excited about what this will mean for Walmart customers, associates and consumers everywhere as we try to help empower millions to improve their financial lives.”
