Payments fintech Ipagoo bought out of administration

By Roger Baird on 2nd September 2019

Fintech

An Anglo-Dutch investment group is in talks to buy the London-based payments firm.

Payments fintech Ipagoo bought out of administration
Image source: Bruce Mars from Pexels

 

Ipagoo is being brought out of administration a month after the international payments firm was forced to suspend customer accounts.

Anglo-Dutch investment group Chairmans Financial agreed to buy the London-based fintech for an undisclosed fee.

Chairmans has agreed to buy 100 per cent of Ipagoo as well as some of the assets from Orwell Group, the parent company that developed Ipagoo’s software, it said in a statement released last Wednesday.

The Financial Conduct Authority (FCA) told Ipagoo on 24 July that it “must not carry on any regulated activities”, effectively freezing customer accounts. The regulator added that the firm must also not dispose of any assets or funds it holds within its e-money services business.

 

Cross-border payments 

Ipagoo fell into administration, appointing FRP Advisory eight days later, citing a lack of working capital and FCA restrictions. The firm ran into trouble following a poor recent funding round, according to the Financial Times.

The regulator has not revealed the size of the funds trapped inside Ipagoo, or how many customers are affected. But it said: “The firm has a small customer base.”

Ipagoo, founded in 2015 by former Goldman Sachs Asset Management director Carlos Sanchez, provides cash management, debit cards and cross-border payment services for customers and banks in real-time. 

Chairmans is holding sales talks regarding the fintech with the administrator, and expects completion in September. However, any deal hangs on FCA approval.

 

Fintech investor

London-based Chairmans Financial was founded this year to buy stakes in UK and European fintechs. It is led by joint managing directors Temo Tcheishvili, a former investment director at Dutch bank ING, and Jordan Oxley, who has a background in the energy sector.

Chairmans said Ipagoo’s “technology is the most advanced provider of cross-platform real-time reconciliation”.