Banking app, Dave to go public via merger with VPC Acquisition

• Mark Cuban backed banking app, Dave inks definitive agreement for a business combination with SPAC, VPC Impact Acquisition (VPCC) for becoming public and trade under the symbol, "DAVE" with an expected pro forma, fully-diluted equity value of ~$4B, assuming no redemptions.

• Combine company balance sheet is expected to result in $375M+ of cash indicating a contribution of up to $254M of cash held in VPCC’s trust account and $210M concurrent private placement led by Tiger Global Management.
• Business combination is expected to close late in Q3 or Q4.
• Dave, a financial platform assists 10M customers with banking, financial insights, overdraft protection, building credit and finding side gigs; until date, the company estimates that it has helped customers avoid ~$1B in overdraft fees through its flagship feature, ExtraCash, and earn $200M+ in income through its gig-economy job board, Side Hustle.
• It also launched Dave Banking in December 2020, a spending account and debit card with no monthly fees, which has already collected 1.3M+ members.
• Sponsor company Victory Park Capital for SPAC, VPCC most recently providing a $100M credit facility to the company in January 2021.

Comments

[kkmm12]

How will the company produce earnings besides customers interest deposit.