Credit Mutuel Arkia bought 86% of the shares in The Lychee Company in September 2015, while the online fundraising startup was prolific and claimed 1.5 million users worldwide (April 2014 figures). Today, competition is much more important and the company’s model has become a 3.6 million euro sinkhole in the year 2020 alone.
In the information noted by echo, we learn that the French Bancassurance Group would have mandated Deutsche Bank to find a buyer for lychee and to part with its majority stake in the company. A step back in fintech and a real change in strategy.
How did lychee come to this? Over three years, it will lose 6.7 million euros from Credit Mutuel Arkia, which had already invested 60 million euros five years ago to take decision-making power.
New players mistake In Neobank and Online Banks In a special way. The principle of an online pot can be quickly copied elsewhere. Banking institutions with multiple sources of income are able to offer their fundraisers completely free of charge to their customers without asking them to register for a third party service.
Lychee has apparently offered a free formula to please its users wishing to contribute towards their birthday, an event, a trip…all without paying between 1.9 and 4% commission across platforms, which he usually asks. But adoption was not enough.
Crédit Mutuel Arkéa’s change in strategy doesn’t stop there, and the group will also split from its fintech MangoPay, which is dedicated to online payment and marketplace solutions for businesses.
echo Quoted Julian Carmona, the new president of the Transcendentalist group, who indicated “Analyze Portfolio and Strategy” In front of new opportunities in the fintech landscape. In other words, Crédit Mutuel Arkéa doesn’t want to give up on new innovative startups. For a watchful eye, be careful not to invest in any other financial abyss.