Russian payment major Qiwi will shut down the mobile banking service Rocketbank by the end of this year, having failed to find an acquirer for this asset.
Qiwi’s financial report reveals that Rocketbank’s net loss amounted to 684 million last year (slightly more than $10 million at last year’s exchange rate), up 17% from 2018. The loss could reach as much as 1.5 billion rubles this year.
“Throughout the first half of 2019, we reviewed a number of strategic opportunities for the development of Rocketbank’s business as either a part of our broader ecosystem or as a standalone project,” the report says.
“Our Board of Directors concluded that the investment profile and financing requirements of Rocketbank’s business plan were not compatible with QIWI’s risk appetite and that the business had limited potential synergies with Qiwi’s core business.”
Since no suitable candidate for a full or partial acquisition could be found, Qiwi decided to “wind-down Rocketbank operations,” which will be done progressively in the course of this year.
Qiwi, however, is “reviewing the most efficient way to reuse or dispose of the Rocketbank assets, including piloting certain projects earlier developed in Rocketbank.”
A pioneer of mobile banking in Russia, Rocketbank has had an eventful life since its launch in 2012. The startup made successful first steps, raising millions of US dollars from Runa Capital then from Life.SREDA.
In 2015, Rocketbank’s founder declined a mocking $1 million offer from Oleg Tinkov – a Russian billionaire who is now facing tax fraud charges and serious health issues in London.
Otkrytie, a major Russian bank, acquired the startup in 2016 — but sold it to Qiwi the next year just before being shut down by the Russian central bank.
