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PYMNTs speak to Dee, MoneyLion CEO, about taking the SPAC route. Dee said the "SPAC allows MoneyLion to put a significant amount of cash on the balance sheet to accelerate its corporate efforts and increase brand awareness. The “quantum of capital” that can be raised in one transaction versus over several transactions means “your degrees of freedom increase. There are other benefits to being public other than just the capital. Those benefits come from a talent acquisition perspective, from a visibility perspective, from a partnership perspective.”
There are challenges with attracting a SPAC, he said. The targeted firm’s discipline needs to be there, the margin profile and growth rates need to be there. Investors want access to high-growth, high-profit margin businesses. “If we think about what’s happening now with FinTechs, they’re the best ones that have those profiles — the high growth rate, the profit margins, and they are fulfilling the broader macro need for access to those types of companies in the public markets,” he said. MoneyLion, he said, has been able to prove that its technology has been driving customer acquisition efficiency and that users are taking advantage of a broad range of services and financial products on offer. That’s been driving contribution profit margins over the past 12 months of more than 60 percent, and projections over the next several years have that margin growing into a 70 percent range and beyond. With the assertion that there are 100 million Americans that are less than happily banked, he said, “we’re well-positioned to be the go-to partner of choice for middle-income American household...
https://www.pymnts.com/news/ipo/2021/moneylion-ceo-spac-route-offers-fintechs-degrees-of-freedom/
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