Banking Giant Makes Digital Payments Move
Lloyds Banking Group has agreed to purchase British digital wallet provider Curve in a deal valued at approximately £120 million ($139 million). The acquisition, set to be formally announced next week according to sources familiar with the matter, represents what could be the UK’s largest high street bank’s most substantial entry into digital payments to date.
Curve informed its shareholders in recent days that it had signed a share sale and purchase agreement with Lloyds. The company, which boasts over six million users, has been facing financial pressures that could potentially deplete its cash reserves this year without a buyer.
Valuation Dispute Sparks Shareholder Conflict
The acquisition has ignited significant controversy among Curve’s major investors, who argue the valuation substantially undervalues the platform. Early shareholders, including IDC Ventures—the company’s largest external investor with a 12% stake—have publicly rejected the deal and are threatening legal action to block the sale.
Curve CEO Shachar Bialick acknowledged in early September that Lloyds’ offer represented a lower valuation compared to previous fundraising rounds. However, he maintained that securing the company’s future took precedence over the sale price. Since its launch, Curve has raised more than £250 million ($289 million), including a £37 million funding round led by Hanco Ventures in March this year.
Governance Concerns and Legal Challenges
IDC Ventures expressed deep concerns about how Curve’s management and board handled the sale negotiations. The investor stated that governance issues and ownership questions remained unresolved at the time of the agreement and argued the transaction wasn’t in the company’s best interests.
“It is a matter of real surprise to shareholders that Lloyds Banking Group would contemplate proceeding with a transaction that IDC believes is not in the best interests of the company or its shareholders,” the firm stated. “IDC does not intend to support the proposed sale and does not believe that it is capable of being implemented without its support.”
The conflict isn’t new. In July, IDC Ventures attempted to remove Lord Stanley Fink, the former Conservative Party treasurer, from his position as chair of Curve. The board reinstated him just two days later. During an extraordinary general meeting in early October, opponents failed to remove both Fink and CEO Bialick through a shareholder vote.
Company’s Defense and Future Prospects
In its communication to shareholders, Curve acknowledged the disappointment surrounding the valuation, noting that the offer “falls short of the ambitions we all held for Curve.” However, the board maintained that the transaction represents “the best available path forward for Curve’s creditors and shareholders as a whole.”
Bialick previously highlighted the strategic importance of the deal, stating it would allow Curve to “invest further in our customer experience, bring new partnerships, and accelerate our path to profitability.” He pointed to market developments like Visa Flex and MasterCard One Credentials as opportunities the investment could help capture.
IDC Ventures, represented by London law firm Quinn Emanuel, has been involved with Curve for six years and participated in several major funding rounds. The investor continues to press both Curve and Lloyds to address its concerns before proceeding with the acquisition, signaling the deal may face significant hurdles despite the announced agreement.
