Tinaba Launches a New Recapitalization, This Time for €30 Million

Tinaba (an acronym for This is not a bank), an Italian fintech startup launched by Sator Private Equity Fund in November 2015 has launched a new capital increase, this time for a good  $34 million (€30 million). This is written by MF Milano Finanza, specifying that, as stated in the minutes of the extraordinary shareholders’ meeting held last December 10, the recapitalization became necessary “in view of the need to find financial resources to support the business plan and the prospective development of the company in the short to medium term.” The capital increase, offered to shareholders, can be subscribed within the next 12 months.

As a reminder, Tinaba’s shareholders are Arepo Ti (an emanation of the Sator Private Equity fund) which has about 70%, followed by Sator itself and Banca Profilo (listed on Piazza Affari and controlled by Sator) each with 15%.

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The operation comes a little over a year after the last recapitalization of $6.8 million (€6 million)

It is therefore the fourth capital increase subscribed by the shareholders since the launch of the business, after those of $1.7 million (€1.5 million) and $14.2 million (€12.5 million), both subscribed in 2018.

Tinaba had required 2 years and a half of work and $34 million (€30 million) of investment to be launched, Matteo Arpe had said in a press conference in July 2016, presenting Tinaba’s business plan.

Since then, however, and until 2020, Tinaba has accumulated over $36 million (€32 million) in losses: $6.8 million(€6 million in 2020, after $7.3 million (€6.4 million) in 2019, $10.6 million (€9.3 million) in 2018, $8.7 million (€7.7 million) in 2017, $2.5 million (€2.2 million) in 2016 and one million in 2015. Against capital reserves at the end of 2020 for more than $51 million (€45 million and a net worth of $14.4 million (€12.7 million).

The digital ecosystem created by Tinaba is based entirely on a proprietary Italian technology that enables partner banks to innovative and unique digital services. Tinaba’s app can be used worldwide to share money, allows for digital payments with zero commissions for merchants, and is integrated with Banca Profilo.

In fact, Banca Profilo’s interest in Tinaba should be read in the context of the industrial plan which envisages the development of the digital offer in partnership with Tinaba, to fully seize the opportunities of fintech, with a growth in users at the end of the plan at 375 thousand, assets in robo-advisor over $340.7 million (€300 million) and the launch of new products and services for total revenues of $6.8 million (€6 million).

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(Featured Image by viarami via Pixabay)

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First published in Be Beez, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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