As bank-fintech tie-ups multiply, a major alliance was announced on November 4, 2019. Santander has taken control of startup Ebury for £350 million, and now holds over 50% of its capital.
Ebury, a fintech specializing in international payment services for SMEs
Founded in 2009 by two Spaniards and based in London, Ebury offers international payments and currency exchange services for SMEs. The British fintech is present in 19 countries and employs 900 people. Its customers include NGOs, banks and investment funds. The company processed £16.7 billion in payments issued by its 43,000 customers in 2018. It has posted average annual growth of 40% over the past three years.
Ebury had already raised 120 million euros since its creation. Thanks to Santander's contribution, the company intends to accelerate its international development, particularly in Latin America, North America and Asia. It is also set to offer more services in partnership with banks.
Santander, one of the world's top 10 buyers by volume
The Santander banking group has 4 million SME customers worldwide and is one of the world's top 10 acquirers by volume. Last November, the Spanish bank announced the acquisition of British start-up Ebury for almost 400 million euros. This acquisition is in line with the bank's digital strategy of fostering alliances with startups to accelerate growth.
In April 2019, Santander pledged to invest 20 billion euros over 4 years in digital and technology. A few months later, the group along with some 15 other banks (including Crédit Agricole, Royal Bank of Canada and Eurobank) launched a global network aimed at facilitating international trade with a digital platform operating in the cloud. The platform provides an overview of the regulations applicable in different countries, as well as market information for members in over 90 countries.
The acquisition announced by Santander brought Ebury's valuation to over 800 million euros. For its part, the banking giant is counting on this operation to help SMEs access international markets and offer them faster, more efficient services that were initially reserved for large corporations. Of the £350 million invested, £70 million will be devoted to supporting fintech Ebury. The bank assures us, however, that Ebury will remain "completely autonomous".