US-headquartered digital bank One Zero is gearing up for another fundraising round. Soon, representatives of the digital bank will meet with shareholders to raise $100 million. The valuation for this round will be determined during meetings with shareholders likely to contribute. Reports suggest that the bank is eyeing a valuation between $400 million and $450 million.
Previously, the bank raised funding in 2022, which valued it at $320 million. If the estimated valuation of the upcoming round turns out to be true, the new round will value it over around $100 million higher than its current valuation. The increased valuation is attributed to the bank nearing profitability for the first time, to achieve initial annual profitability by 2025.
Who is to invest in the bank?
Participants in the funding round are likely to include existing shareholders, as well as new investors. Current stakeholders with over 1% share in the digital bank, alongside Amnon Shashua, the bank’s founder and CEO and founder of Mobileye, include the Swiss bank Julius Baer, Cerberus Capital Management, the high-tech investment platform OurCrowd, and the insurance company Hachshara.
Notably, the company attempted to raise the investment last year but it did not materialise due to the Israel war, thereby delaying the company’s expansion plans. A few months back, the digital bank announced its plans to expand abroad alongside Generali Bank, which is the third-largest private bank in Italy. However, in September, the bank informed employees that it planned to cease its expansion plans without an estimated timeline.
This expansion was expected to prompt a restructuring of the bank and its management. It had planned to separate its Israeli operations from the technology company that would develop products for the Italian market. One Zero’s CEO, Gal Bar Dea, was to manage the bank in Italy and oversee its international expansion and Eyal Gafni was set to become CEO of One Zero Israel.
Besides axing its expansion plans, in the current year, One Zero laid off 50 employees of its 400-person team.
A brief about One Zero
Founded by Amnon Shashua and Marius Nacht in 2019, One Zero offers households private banking services. It provides advanced services, including flexible and competitive credit solutions, alongside standard banking services such as current accounts, credit, deposits, and securities management, enabling customers to save time and money. With an aim to solve complicated problems with AI, One Zero aims to use AI in retail banking services.
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