MoneyLion Announces 2020 Results, Q1 Preview Ahead Of Listing

MoneyLion, a financial wellness platform, formally announced its fourth-quarter full-year 2020 results.

What Happened: MoneyLion is a holistic platform for wealth accumulation and management.

In providing American’s better access to modern mobile banking, investing, cash management, and credit building, the company’s customer base grew 60% in the fourth quarter of 2020. Revenues also grew, amid a 310% increase in originations, to $25.5 million, compared to $11.6 million in the same period in 2019.

For the full year 2020, total customers stood at 1.4 million users, up from 894,000 in 2019. Total payments volume grew 84% to $510 million, originations grew 242% to $410 million, and revenues increased 32%.

For the first quarter of 2021, MoneyLion expects to report an adjusted revenue of $31.5 million, up 118% compared to the first quarter of 2020, or $126 million.

Why It Matters: To enable more American’s better access to modern mobile banking, investing, cash management and credit building tools, MoneyLion announced it entered into an agreement with Fusion Acquisition Corp FUSE to become a publicly-traded company.

As part of the agreement, the combined company will have an estimated post-transaction enterprise value of $2.4 billion with an estimated equity value of $2.9 billion from the contribution of up to $526 million in cash proceeds from the transaction, net of debt paydown and expenses.

Proceeds, which consist of up to $350 million of cash and an additional $250 million fully committed private investment at $10.00 per share, will be used to support MoneyLion’s working capital and scale its proprietary technology platform and suite of products.

Recent additions to MoneyLion’s portfolio include the acquisition of algorithmic financial technology provider Wealth Technologies and investment in Zero Hash to enable members to buy, sell, and earn digital currencies.

“The digital financial solutions landscape changed significantly in the past year, and I’m proud of our team’s ability to capitalize on market opportunities, deliver strong financial results and generate consistent, high-user growth and engagement on our platform,” said Dee Choubey, MoneyLion co-founder and CEO.

“As our preliminary first-quarter results demonstrate, this momentum has strengthened due to the advancement of our product offerings and capabilities to help more customers take control of their financial future. In light of these results, we are confident in our ability to meet our financial outlook for the full year 2021.”

To learn more about MoneyLion, click here.