Hazel announces definitive merger agreements with two companies
Last year, Walmart announced the creation of a new fintech startup designed to develop and offer modern, innovative and affordable financial solutions in partnership with VC firm Ribbit Capital.
Today, the startup ( One by Walmart ), which is called Hazel for now, is coming out of stealth mode with the acquisition of two companies.
The first company being acquired is Even, which raised $52 million to date. The startup offers a financial benefits platform that pairs earned wage access with tools for budgeting, emergency savings and visibility into projected net earnings to better support the financial health of its users.
The second company being acquired is One Finance, a digital bank on a mission to “help middle-class American families maximize their paychecks.” ONE has raised $17 million to date and banking services are provided by Coastal Community Bank.
Following the acquisitions, Hazel will adopt ONE’s name.
The combined business will provide users with an all-in-one financial services app to holistically manage their finances in one place. Over time, the ONE app will be integrated inside Walmart’s physical and digital channels, offering solutions to its 1.6 million U.S. associates and 100 million-plus weekly shoppers. The ONE app will still be available to consumers.
“Consumers everywhere are being left behind by the world of financial services. Our vision is clear: build on Even and ONE’s success to offer a product that offers consumers the best way to spend, the best way to access their wages and helps millions save and grow their money. I’m looking forward to partnering with two stellar leaders in Brian and David to improve the financial lives of tens of millions of consumers.” – Omer Ismail, incoming CEO of ONE.
“Walmart is constantly looking for new ways to deliver on our core mission of helping our customers save money and live better. Customers have made it clear that they want more from us in the financial services arena. Creating a simple, personalized app that allows users to manage their money in one place is the natural next step toward fulfilling that. We couldn’t be more excited about what this will mean for Walmart customers, associates and consumers everywhere as we try to help empower millions to improve their financial lives.” – John Furner, president and CEO, Walmart U.S. and board member of the combined business.
“Consumers are always seeking better services, and in financial services this means transparency, access and simplicity. The combination of these world-class teams and products will give ONE a unique opportunity to bring a new level of service and access to millions of Americans.” – Micky Malka, managing partner, Ribbit Capital and board member of the combined business.