Fintech super-app Rauva to acquire Portuguese bank for €30m

Portugal's fintech super-app Rauva is to acquire the bank Banco Empresas Montepio for around €30m, advancing its business solutions

Portuguese fintech super-app Rauva has agreed to acquire Banco Empresas Montepio for a value of around €30m, which it says will “position the company for lasting growth”.

Rauva believes the acquisition will allow it to offer new financial products geared towards small-to-medium-sized businesses (SMEs), freelancers and entrepreneurs – such as new credit solutions and other products. The app already includes digital accounts, payments, issuance of physical and digital cards, business expense management and accounting.

It was developed in under a year by founders Jon Fath and Sam Mizrahi. Fath has had a storied career in international M&A and as a tech entrepreneur, while Mizrahi’s career trajectory has been completely different: his background is in the form of an entrepreneur and real estate developer in Canada’s luxury residential and commercial market.

Acquisition of fully licensed bank puts Rauva ‘a step closer’

Despite the fintech startup only being founded in 2022, the founding team has already built up a team of almost 30 employees, according to data from LinkedIn. Rauva has been chosen by Portugal’s central bank, Banco de Portugal, to take part in its FinLab programme and has been named a ‘Top Emerging Fintech’ as well.

Jon Fath, Co-founder and CEO of Rauva, says: “Our acquisition of Banco Empresas Montepio not only saves time for us in the long run but will increase our efficiency and ability to scale. Since day one we´ve been working towards building a fully fledged bank, which is essential for our customers who depend on having the best possible solutions and services. This exciting move also puts us even closer to becoming one of Portugal’s first unicorns.”

Iberia’s digital banking scene is enjoying a moment in the sun right now; almost 1.5m people in Portugal already use neobanks, making it Europe’s fourth largest market, and the country is one of the fastest growing on the continent in terms of neobank adoption. According to SEON’s research, almost a third of Portuguese people will have a neobank account by 2027.

In July, Turkish neobank Papara acquired Spain’s Rebellion, establishing a presence for itself in continental Europe and helping it to secure a billion-dollar valuation for the first time. Papara has since told FinTech Magazine that the company intends to press ahead with acquisitions as its main vehicle for expansion throughout Europe.

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