According to a new release on Wednesday, Walmart-backed fintech startup Hazel is acquiring two other fintech companies Even Responsible Finance, a firm based in Oakland, California and One Finance Inc. a financial services company based in Sacramento, California. The three companies would join together and their new name would be ONE. The transaction is expected to be completed by the first half of this year. The financial terms remain undisclosed. The Wall Street Journal was the first to report the news.
Last year, Walmart had teamed up with Ribbit Capital to develop unique and affordable financial products in a venture called Hazel. Two Goldman Sachs consumer bank employees– Omer Ismail and David Stark joined the new venture after leaving their company. Now, Omar Ismail will lead the new fintech ONE, according to the press release.
After the transaction goes through by mid 2022, the new company will have over 200 employees. It is expected to have a capitalization of over $250 million in cash. This will be used to fuel further growth.
The purpose of the combined companies is to build an all-in-one app that would help consumers manage their money. Consumers can spend, save and borrow within the same app. Even, an early wage access firm, has an app that offers help with budgeting as well as help in building emergency savings. One is proficient in offering debit cards and checking and saving accounts. It also helps consumers budget their money and keep a track of their money. It provides access to over 50,000 ATMs using the Allpoint network as well as mobile financial tools.
The new company, ONE will offer its products and services directly to consumers, through employers and merchants as well as to the 1.6 million associates of Walmart and more than 100 million shoppers who shop weekly at the big box retailer.
The Bentonville, Arkansas company has always been looking to expanded and now has a large presence in health care and beyond, apart from its flourishing retail businesses. It is now expanding its reach in the financial business. ONE fintech will already have a huge market to tap in as it ropes in consumers and associates from Walmart to use its future all-in-one app.
