Verse, the Spanish mobile payment company with around 500 million euros transacted and whose amounts to more than 7 million euros has been acquired by Squarethe mobile payments and digital financial services company founded by none other than , best known for being the CEO and founder of Twitter.
This is carried out by Square in Europe, which means its imminent entry to the continent, since for now it only has a presence in . For its part, Verse will maintain its independencefrom the hand of its CEO Bernardo Hernández, former director of Google and Yahoo.
This is Verse, the Spanish Fintech acquired by Square
Verse was founded in 2015 and since then it has undergone great transformations: In October 2017, the Verse board of directors decided to remove its three founders from the management of the startup: Borja Rossell, Álex Lopera and Darío Nieuwenhuis due to the failure to meet the growth objectives they had set.
After several changes in its board of directors, Bernardo Hernández took the baton as CEO, however, in addition to the managerial changes, the startup has also fluctuated in its shareholding and valuation.
More than two years ago, the large investment funds that backed the company, including Spark Capital e-ventures, they came out detaching themselves from all participation.
But after two rounds that were closed in 2018 and 2019 Verse added almost 10 million dollars with new investorsamong which are Martin Varsavsky or Nikesh Arora, former president and COO of Softbank.
Now, the app to make and receive payments via mobile is a clear competition for , the platform created by the main Spanish banks. In fact, in order to be able to operate in Europe, so is capable of operating throughout the European economic area.
After its acquisition, Square will be able to expand rapidly throughout Europe
For its part, Square is a financial services firm headquartered in San Francisco, USA. It was founded by Jack Dorsey in 2009 and ten years later it generated revenues of 4.7 billion dollars, while making a net profit of more than 4 billion dollars. Its stock market valuation is close to 40,000 million dollars.
“Our top priority is allow Verse to continue to grow successfully in Europe. It will continue to operate as an independent company, working from its offices, with no immediate changes to its existing products, users or business agreements
“Verse will join the Cash App in Square, so the two teams can learn from each other while providing them with the necessary support through technology and our resources”.
Square will mean a significant injection of resources for Verse, while Jack Dorsey’s Fintech will be able to import to Europe some of the services that Cash App offers in the US.
For now neither of the parties has revealed the price of the transaction, however the price paid is less than 50 million euros, and at a valuation of more than double the one set when raising the 8 million euros in an investment round, in a range between 30 and 40 million.
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