Dave

Dave provides banking products via a mobile app. The company was initially founded to offer micro-lending products such as overdraft protection but has since branched out to offer other banking services. The company does not charge overdraft fees (for amounts up to USD 500), minimum balance fees, or ATM fees. It also offers credit in the form of cash advances for amounts up to USD 100. In addition, the company has partnered with LevelCredit, a credit builder, to enable customers to improve their credit scores by reporting rent payments directly to credit bureaus. The app also provides Personal Finance Management (PFM) tools that help customers monitor their spending habits and create budgets for future expenses. 

In 2020, the company launched ‘Dave Banking’, a spending account that includes a debit card with no monthly fees. Dave offers its spending account free of charge. Customers also have the option to connect their external bank accounts to the Dave app at a cost of USD 1 per month. Aside from its banking products, the app provides a ‘Side Hustle’ facility, which enables existing customers to find new employment opportunities, outside full-time employment. 

As of June 2021, the company claimed that it had saved its customers about USD 1 billion worth of overdraft fees, in addition to helping freelancers earn over USD 200 million from its Side Hustle feature. 

In March 2022, the company partnered with the cryptocurrency exchange FTX US, where Dave aims to use FTX as its exclusive partner for cryptocurrencies. The two parties are also planning to introduce digital asset payments to Dave’s platform. FTX Ventures, the venture capital arm of FTX, also invested USD 100 million in Dave via a convertible note purchase. The new funds from FTX Ventures are to be used to fast-track Dave’s new developments, including crypto-related products.

Key customers and partnerships

As of June 2023, the company had around 9.2 million customers (up 26.7% YoY).

Funding and financials

As of October 2019, Dave was valued at over USD 1 billion. In January 2021, Dave received USD 100 million in the form of a credit facility from Victory Park Capital. The funding is expected to be used to develop new products. In June 2021, the company announced plans to go public via a merger with a Special-Purpose Acquisition Company (SPAC) at a post-money valuation of USD 4 billion and expected to raise cash proceeds of over USD 375 million. The merger was finalized in January 2022. 

For the full year 2022, Dave reported revenues of USD 204.8 million (up 33.9% YoY), while its net loss deteriorated to USD 128.9 million from a loss of USD 20.0 million in the prior year.