Curve Sold to Lloyds Banking Group for £120 Million as Fintech Ambitions Cut Short

Curve, the London-based payments technology company once projected for a multibillion valuation, has been acquired by Lloyds Banking Group for £120 million. The sale draws a sharp contrast with previous ambitions, as Curve’s leadership had aimed for valuations reaching as high as $60 billion by the end of the decade. Shachar Bialick, Curve’s founder, outlined these targets in 2019, stating aspirations to establish Curve as a core operating system for personal finance.

Since its founding in 2015, Curve had positioned itself as a disruptive force in digital payments, combining multiple bank accounts and cards into a single digital wallet. The platform offered users the ability to switch payment cards post-transaction, manage fees, and employ automated spending rules to control how and where transactions were processed.

The final sale price is less than half the reported £250 million Curve raised across funding rounds since its 2016 launch. This result prompted clear dissatisfaction among shareholders and Curve’s largest investor, IDC Ventures, which holds a 12 percent position. IDC has voiced concerns about the management and direction of the sale process, questioning whether the outcome truly served the best interests of the company and its stakeholders.

The company has faced financial headwinds, with turnover declining 12.5 percent from £44.95 million in 2023 to £39.35 million, according to the most recent accounts. Although losses narrowed from £22.2 million to £3.4 million, headcount was cut by roughly one third to 184 employees. Directors noted an urgent need for fresh capital to maintain business continuity, emphasising that additional funding would be sought as it had been in the past.

The acquisition offers Lloyds Banking Group a significant enhancement to its digital banking operations. Lloyds intends to integrate Curve’s technology and payment platform, promising customers increased flexibility, the opportunity for new rewards, and avoidance of foreign exchange fees on linked cards. Lloyds emphasised the strategic nature of the acquisition, highlighting the intention to deliver a broader set of digital services and improved customer control over personal finances.

For Curve, the sale marks a significant pivot from its initial ambitions, but the company asserts that the deal leverages the scale and credibility of Lloyds, potentially benefiting Curve’s customer base. The transaction is characterised by both parties as a pragmatic step in the challenging current environment for fintech ventures.