Dave, a California-based challenger bank, personal finance app and earned-wage access provider, announced plans to merge with VPC Impact Acquisition Holdings III, Inc., a special-purpose acquisition company sponsored by Victory Park Capital.

Why should we care?
Dave, which counts 10 million users and Mark Cuban as one of its backers, is the latest digital banking fintech planning to go public through a merger with a SPAC, after SoFi and MoneyLion embarked on similar moves in recent months. Dave, which launched in 2017, initially focused on helping its users avoid overdraft fees through notifications and earned-wage access; it expanded to banking in 2019. Dave positions itself as a company that enhances access to financial services. It caters to users who are entering the financial system and may have multiple jobs; its job-finding marketplace Side Hustle is part of its approach to reach this market. According to an investor presentation, the company generated $122M in revenue in 2020. Its ecosystem approach to financial services is a play for longer-term loyalty of its customer base and presents an opportunity to add additional products and services as their needs evolve. “Dave’s growth and expansion over the last few years have been significant and we believe that the company has only scratched the surface of what it can achieve,” Brendan Carroll, Co-CEO of VPC Impact Acquisition Holdings and Senior Partner and Co-founder of Victory Park Capital, said in a statement.