Finablr
{{short description|Abu Dhabi-headquartered financial services company}}
{{Infobox company
| name = Finablr
| logo = Finablr logo.png
| type = Limited company
| traded_as =
| foundation = {{Start date and age|df=yes|2018|04}}
| location = Abu Dhabi
| key_people =
| industry = Financial services
| products = Payment Technology
Foreign Exchange
Cross-Border Payments
| revenue = $1,434.6 mil* (2018){{cite web|url=https://investors.finablr.com/en/reports-and-presentations/|title=Prospectus|publisher=Finablr|access-date=3 September 2019|archive-url=https://web.archive.org/web/20200113190913/https://investors.finablr.com/en/reports-and-presentations/|archive-date=13 January 2020|url-status=live}}
| operating_income = $164.8 mil* (2018)
| net_income = $-13.3 mil* (2018)
| num_employees = 18,201 (2018)
| parent = Prism Group AG
Royal Strategic Partners
| subsid = {{Bulleted_list|UAE Exchange|Xpress Money|TimesofMoney|Remit2India|Bayan Pay|Travelex|Unimoni|PEaaS|Swych|Nyuvo|Ditto}}
| homepage = {{URL|https://www.finablr.com}}
}}
Finablr was a financial services holding company that operated between 2018 and 2020. It was listed on the London Stock Exchange, but its shares were suspended and subsequently delisted from trading in 2020 after a financial scandal. The company was bought by Prism Group AG and Abu Dhabi's Royal Strategic Partners in Dec 2021 and rebranded as WizzFinancial.{{cite news |url=https://www.reuters.com/business/finance/finablr-re-branded-wizzfinancial-merged-into-leading-payments-group-2021-08-03/ |title=Finablr re-branded WizzFinancial, merged into leading payments group |date=August 3, 2021 |publisher=Reuters}}
History
=Foundation and IPO=
The company was established by the Indian-born former billionaire B. R. Shetty in April 2018.{{cite web| url=https://www.forbesmiddleeast.com/en/billionaire-b-r-shetty-launches-new-financial-firms-holding-company-finablr/| title=Billionaire B.R. Shetty Launches New Financial Firms Holding Company Finablr| author=Mary Sophia| date=24 April 2018| work=Forbes Middle East| access-date=24 August 2018| archive-url=https://web.archive.org/web/20180825073919/https://www.forbesmiddleeast.com/en/billionaire-b-r-shetty-launches-new-financial-firms-holding-company-finablr/| archive-date=25 August 2018| url-status=live}} Initial investments included UAE Exchange, which Shetty acquired in 1980, and Travelex, which was acquired in 2014.
In October 2018, Finablr brands, Travelex and Swych, launched a cross-border shopping solution for WeChat Pay users.{{cite web|url=https://markets.businessinsider.com/news/stocks/leading-digital-gifting-platform-swych-partners-with-leading-cross-border-financial-services-firm-travelex-to-introduce-travelex-pay-a-wechat-pay-powered-service-1027621355|title=Leading Digital Gifting Platform Swych Partners with Leading Cross-Border Financial Services Firm Travelex to Introduce 'Travelex Pay', a WeChat Pay Powered Service {{!}} Markets Insider|last=GmbH|first=finanzen net|website=markets.businessinsider.com|access-date=2019-08-27|archive-url=https://web.archive.org/web/20190827075056/https://markets.businessinsider.com/news/stocks/leading-digital-gifting-platform-swych-partners-with-leading-cross-border-financial-services-firm-travelex-to-introduce-travelex-pay-a-wechat-pay-powered-service-1027621355|archive-date=2019-08-27|url-status=live}}
In November 2018, Finablr acquired India's digital payments firm TimesofMoney from Network International to capitalise on the growth of e-commerce.{{cite web|url=https://www.thenational.ae/business/technology/finablr-acquires-indian-digital-payments-firm-to-capitalise-on-e-commerce-growth-1.796897|title=Finablr acquires Indian digital payments firm to capitalise on e-commerce growth|website=The National|date=28 November 2018 |language=en|access-date=2019-08-27|archive-url=https://web.archive.org/web/20190827075056/https://www.thenational.ae/business/technology/finablr-acquires-indian-digital-payments-firm-to-capitalise-on-e-commerce-growth-1.796897|archive-date=2019-08-27|url-status=live}} Also in November 2018, Finablr became a majority shareholder of Swych, a digital gifting platform.{{cite web |last= |first= |date=November 13, 2018 |title=Finablr takes majority stake in digital gifting firm Swych |url=https://www.fintechfutures.com/2018/11/finablr-takes-majority-stake-in-digital-gifting-firm-swych/ |url-status=live |archive-url=https://web.archive.org/web/20190827075056/https://www.fintechfutures.com/2018/11/finablr-takes-majority-stake-in-digital-gifting-firm-swych/ |archive-date=2019-08-27 |access-date=2019-08-27 |website=FinTech Futures |language=en-GB}}{{cite web|url=https://www.verdict.co.uk/cards-international/news/finablr-stake-increases-swych/|title=Finablr stake in digital gift card platform Swych has now increased|website=Cards International|language=en-US|access-date=2019-08-27|archive-url=https://web.archive.org/web/20190827075057/https://www.verdict.co.uk/cards-international/news/finablr-stake-increases-swych/|archive-date=2019-08-27|url-status=live}}
The company was the subject of an initial public offering on the London Stock Exchange in May 2019.{{cite web|url=https://uk-mobile-reuters-com.cdn.ampproject.org/v/s/uk.mobile.reuters.com/article/amp/idUKKCN1SL1ST?usqp=mq331AQPKAFwAZgB55fu86zol_sX&_js_v=a2&_gsa=1#referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fuk.mobile.reuters.com%2Farticle%2Famp%2FidUKKCN1SL1ST%23referrer%3Dhttps%3A%2F%2Fwww.google.com|title=UAE's Finablr slumps below IPO price in London market debut|date=15 May 2019|publisher=Reuters|access-date=3 September 2019}}
=Start of financial problems=
In January 2020, it was disclosed that shares representing 56% of the company had been pledged by BRS Ventures & Holdings, a company controlled by Dr BR Shetty, as collateral for borrowings.{{cite web|url=https://www.investorschronicle.co.uk/shares/2020/01/24/finablr-sinks-on-news-of-shares-as-collateral-pledge/|title=Finablr sinks on news of shares-as-collateral pledge|date=24 January 2020|publisher=Investors Chrionicle|access-date=1 March 2020|archive-url=https://web.archive.org/web/20200301194848/https://www.investorschronicle.co.uk/shares/2020/01/24/finablr-sinks-on-news-of-shares-as-collateral-pledge/|archive-date=1 March 2020|url-status=live}}
In February 2020, it was announced by Ditto Bank, a wholly owned subsidiary of the business, that their consumer-facing (B2C) operation would cease over the following few months as part of 'a strategic pivot to Banking as a Service'.{{cite web|url=https://www.dittobank.com/strategic-pivot-info/|title=Ditto's strategic pivot to Banking as a Service -}}{{cite web|url=https://www.facebook.com/dittobank/videos/596505431200283|title=Ditto Bank on Facebook Watch|via=www.facebook.com}}
Throughout February and March 2020 shares in the business fell more than 90% compared with their value at 31 December 2019.{{cite web|url=https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/GB00BJ7HMW26GBGBXSTMM.html|title=FINABLR share price (FIN) - London Stock Exchange|website=www.londonstockexchange.com|access-date=2020-03-11|archive-url=https://web.archive.org/web/20200317174356/https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/GB00BJ7HMW26GBGBXSTMM.html|archive-date=2020-03-17|url-status=live}} This followed a considerably turbulent time for the business following the Travelex cyberattack that took place on New Year's Eve 2019, and directly affected its services across the globe for around six weeks,{{cite news|url=https://www.bbc.co.uk/news/business-50977582|title=Travelex site taken offline after cyber attack|date=2 January 2020|work=BBC News|access-date=11 March 2020|archive-url=https://web.archive.org/web/20200107055751/https://www.bbc.co.uk/news/business-50977582|archive-date=7 January 2020|url-status=live}}{{cite news|url=https://www.thetimes.com/business-money/article/banks-shun-travelex-as-cyber-attack-jitters-linger-q390982bq|title=Banks shun Travelex as cyber-attack jitters linger|first=Jill|last=Treanor|via=www.thetimes.co.uk|access-date=2020-03-11|archive-url=https://web.archive.org/web/20200306154114/https://www.thetimes.co.uk/article/banks-shun-travelex-as-cyber-attack-jitters-linger-q390982bq|archive-date=2020-03-06|url-status=live}} with the financial impact of this currently estimated in the region of circa £25 million on a like-for-like basis.{{cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FIN/14443739.html|title=Travelex and Covid-19 update - RNS - London Stock Exchange|website=www.londonstockexchange.com}} The business's share price had also been impacted by the founder, co-chairman and primary shareholder B. R. Shetty's links to the troubled NMC Health business, of which he is also a founder and co-chairman, combined with the headwinds dealt by the ongoing spread of the coronavirus. The business said: {{quote|"The outbreak of Covid-19 is an incremental negative for Travelex's business given broad exposure to airports and travel flows. VAT and related services will also be negatively impacted. While China and other Asian in-country revenue account for approximately 10% of Travelex revenues, other markets closely linked to Asian outbound travel are also experiencing headwinds."}}
On 12 March 2020, the business announced that it was taking steps to assess accurately its current liquidity and cashflow position,{{cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FIN/14458212.html|title=Operational Update and Independent Reviews - RNS - London Stock Exchange|website=www.londonstockexchange.com}} with shares trading at circa 7 pence, down 97% from 11 December 2019 when their value peaked at 215 pence.{{cite web|url=https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary-chart.html?fourWayKey=GB00BJ7HMW26GBGBXSTMM|title=FINABLR share interactive chart (FIN) - London Stock Exchange|website=www.londonstockexchange.com}}
=Stock market listing suspended=
On 16 March 2020, the business's listing on the London Stock Exchange was suspended as it was announced that it was in danger of collapse having identified circa {{USD|100m}} (£81m) of undisclosed financing, which meant it no longer had any certainty over its financial position. Simultaneously, Promoth Manghat, Group CEO, left the business.{{Cite web|url=https://www.cityam.com/finablr-shares-suspended-following-sharp-falls-as-chief-executive-quits/|title=Travelex owner Finablr in danger of collapse as shares suspended|website=cityam.com|date=16 March 2020 |access-date=2020-04-30|archive-url=https://web.archive.org/web/20200322214118/https://www.cityam.com/finablr-shares-suspended-following-sharp-falls-as-chief-executive-quits/|archive-date=2020-03-22|url-status=live}} The business also stated that it was no longer able to provide certain payment processing services; however it failed to address which services this entailed. Kroll were appointed to carry out an independent investigation into its finances.{{Cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FIN/14462315.html|title=Suspension of Listing, Trading Update, Directorate Change and Urgent Board Measures|website=londonstockexchange.com}}
On 17 March 2020, the business announced that it had engaged an accountancy firm to undertake rapid contingency planning for a potential insolvency appointment.{{cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FIN/14463905.html|title=potential insolvency appointment|via=londonstockexchange.com|access-date=2020-04-30|archive-url=https://web.archive.org/web/20200317174338/https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FIN/14463905.html|archive-date=2020-03-17|url-status=live}}{{cite web|url=https://www.standard.co.uk/business/travelex-owner-finablr-on-the-brink-of-collapse-as-it-appoints-insolvency-firm-a4389491.html|title=Travelex owner Finablr on the brink of collapse as it appoints insolvency firm|date=17 March 2020 |via=standard.co.uk|access-date=2020-04-30|archive-url=https://web.archive.org/web/20200318153551/https://www.standard.co.uk/business/travelex-owner-finablr-on-the-brink-of-collapse-as-it-appoints-insolvency-firm-a4389491.html|archive-date=2020-03-18|url-status=live}}
On 18 March 2020, the business announced that its UAE Exchange division would be supervised by the Central Bank of the UAE with immediate effect. The Central Bank of the UAE also stated that it had commenced an examination of UAE Exchange in order to verify its compliance with applicable laws and regulations.{{cite web|url=https://gulfnews.com/business/banking/uae-central-bank-to-oversee-uae-exchange-centre-1.1584499193037|title=UAE Central Bank to oversee UAE Exchange Centre|publisher=Gulf News|date=18 March 2020|access-date=18 March 2020|archive-url=https://web.archive.org/web/20200318042349/https://gulfnews.com/business/banking/uae-central-bank-to-oversee-uae-exchange-centre-1.1584499193037|archive-date=18 March 2020|url-status=live}}
On 29 March 2020, EY (Ernst & Young LLP) resigned as auditor of the business.{{cite web| url=https://www.ft.com/content/048abb7c-92f7-49e5-b264-92b6274f4baa| title=EY quits as auditor for Travelex owner Finablr| author=Daniel Thomas| date=30 March 2020| publisher=Financial Times London| access-date=1 May 2020| archive-url=https://web.archive.org/web/20200422142224/https://www.ft.com/content/048abb7c-92f7-49e5-b264-92b6274f4baa| archive-date=22 April 2020| url-status=live}}
On 9 April 2020, it was reported that Travelex had paid a ransom fee of {{USD|2.3 million}} to restore their systems.{{cite web| url=https://www.bleepingcomputer.com/news/security/travelex-reportedly-paid-23-million-ransom-to-restore-operations| title=Travelex Reportedly Paid $2.3 Million Ransom to Restore Operations| author=Lawrence Abrams| date=9 April 2020| publisher=Bleeping Computer| access-date=5 May 2020| archive-url=https://web.archive.org/web/20200409213227/https://www.bleepingcomputer.com/news/security/travelex-reportedly-paid-23-million-ransom-to-restore-operations/| archive-date=9 April 2020| url-status=live}}{{cite web| url=https://www.wsj.com/articles/travelex-paid-hackers-multimillion-dollar-ransom-before-hitting-new-obstacles-11586440800| title=Travelex Paid Hackers Multimillion-Dollar Ransom Before Hitting New Obstacles| author=Anna Isaac| date=9 April 2020| publisher=The Wall Street Journal| access-date=5 May 2020| archive-url=https://web.archive.org/web/20200422070124/https://www.wsj.com/articles/travelex-paid-hackers-multimillion-dollar-ransom-before-hitting-new-obstacles-11586440800| archive-date=22 April 2020| url-status=live}}
On 9 April 2020, shares in the business were suspended from the London Stock Exchange. The business announced the resignation of Promoth Manghat as chief executive with immediate effect the same day, as well as the appointments of Kroll and Houlihan Lokey to carry out an independent investigation into its finances. Among other localised authorities the UK's Financial Conduct Authority and the Central Bank of the United Arab Emirates are also investigating the business's finances.{{cite web| url=https://www.cityam.com/finablr-shares-suspended-following-sharp-falls-as-chief-executive-quits/| title=Travelex owner Finablr in danger of collapse as shares suspended| author=Anna Menin| date=16 March 2020| publisher=City AM| access-date=30 April 2020| archive-url=https://web.archive.org/web/20200328232059/https://www.cityam.com/finablr-shares-suspended-following-sharp-falls-as-chief-executive-quits/| archive-date=28 March 2020| url-status=live}}
On 22 April 2020, the Travelex division announced that it had placed itself up for sale with immediate effect and was working with PwC on the sale process, it stated that the division had "communicated this intention to Finablr".{{cite web| url=https://www.travelex-corporate.com//uploadedFiles/Travelex%20Financing%20Plc%20-%20RNS%20Announcement%2022%20April%202020%20-%20FINAL.pdf| title=Travelex Financing Plc Sale process| author=Travelex Financing Plc| date=22 April 2020| publisher=Travelex| access-date=1 May 2020| archive-url=https://web.archive.org/web/20200501095459/https://www.travelex-corporate.com//uploadedFiles/Travelex%20Financing%20Plc%20-%20RNS%20Announcement%2022%20April%202020%20-%20FINAL.pdf| archive-date=1 May 2020| url-status=live}}{{cite web| url=https://direct.euronext.com/AnnouncementRNSDetails.aspx?id=14512847| title=Travelex Financing Plc Sale process| author=Travelex Financing Plc| date=22 April 2020| publisher=Euronext Dublin| access-date=1 May 2020| archive-url=https://web.archive.org/web/20200429035003/https://direct.euronext.com/AnnouncementRNSDetails.aspx?id=14512847| archive-date=29 April 2020| url-status=live}}
During April 2020, the operations of most of the business's fascias were suspended in their entirety. UAE Exchange, Xpress Money, TimesofMoney, Remit2India, Unimoni and Ditto (which had ceased previously) all displayed suspension notices on their corporate website homepages {{quote|"[division name] is temporarily unavailable for undertaking transactions. We regret the inconvenience and thank you for your understanding and cooperation as we endeavour to restore the service"Homepages of UAE Exchange, Xpress Money, TimesofMoney, Remit2India, Unimoni and Ditto}}
=Undeclared debts=
On 30 April 2020, Finablr announced previously undeclared debts of around {{USD|1.3 billion}} had been identified by Houlihan Lokey and Kroll as part of their investigations, and that it "cannot exclude the possibility that some of the proceeds of these borrowings may have been used for purposes outside of the Finablr Group".{{cite web| url=https://gulfnews.com/business/banking/uae-exchange-houses-parent-company-now-finds-1-billion-plus-debt-1.1588303659570| title=UAE Exchange House's parent company now 'finds' $1 billion plus debt| author=Gulf News| date=1 May 2020| publisher=Gulf News| access-date=1 May 2020| archive-url=https://web.archive.org/web/20200501092013/https://gulfnews.com/business/banking/uae-exchange-houses-parent-company-now-finds-1-billion-plus-debt-1.1588303659570| archive-date=1 May 2020| url-status=live}}{{cite web| url=https://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=3754243&lang=en-GB&companycode=ae-fin| title=Current indebtedness position| author=Finablr| date=30 April 2020| publisher=Euronext| access-date=1 May 2020| archive-url=https://web.archive.org/web/20200501101149/https://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=3754243&lang=en-GB&companycode=ae-fin| archive-date=1 May 2020| url-status=live}}
During June 2020, Xpress Money, a Finablr business, had its authorisation to operate withdrawn by the UK's Financial Conduct Authority.{{cite web|url=https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000Mfu8sAAB|title=Xpress Money Services Limited must not carry out any regulated activity|publisher=Financial Conduct Authority|date=1 June 2020|access-date=3 July 2020}}
In July 2020, Finablr appointed Skadden Arps Slate Meagher & Flom (UK) LLP 'to enable Finablr to investigate historic potential malfeasance within the Finablr Group and any misappropriation of assets of Finablr PLC and certain members of its group'. {{Cite web|url=https://www.investegate.co.uk/finablr-plc/rns/appointment-of-skadden-for-investigation/202007220800077346T/|title=Investegate |Finablr PLC Announcements | Finablr PLC: Appointment of Skadden for investigation|website=www.investegate.co.uk}}
On 6 August 2020 PwC announced that a so-called "pre-pack" administration deal for Travelex had been reached, with the company being taken over by a consortium of its creditors.{{Cite web|url=https://www.pwc.co.uk/press-room/press-releases/Travelex-completes-debt-restructuring.html|title=Travelex completes debt restructuring|website=PwC}}
=Sale of the business=
In October 2020, it was reported that Prism Group AG was making a joint bid for Finablr Ltd with Royal Strategic Partners, the Abu Dhabi investment vehicle associated with Hazza bin Zayed bin Sultan Al Nahyan, brother of the President of the United Arab Emirates, Mohammed bin Zayed Al Nahyan.[https://www.ft.com/content/834054ff-e26c-4612-badc-6d97db7c379d Finablr agrees to takeover offer from Prism] Financial Times, 6 October 2020, Simeon Kerr and Cynthia O’Murchu The deal was accepted by the Finablr board in December with the Prism Group consortium paying {{USD|1}} for Finablr.[https://www.bloomberg.com/news/articles/2020-12-17/scandal-hit-finablr-sold-for-1-to-israeli-uae-consortium Scandal-Hit Finablr Sold for $1 to Israeli-UAE Consortium] Tom Metcalf, 17 December 2020 On 16 December 2021, the Financial Conduct Authority refused Finablr's request to cancel its premium listing on the London Stock Exchange.{{Cite web|url=https://www.fca.org.uk/news/statements/fca-decision-notice-finablr-plc|title=FCA Decision Notice to Finablr plc|date=December 15, 2021|website=FCA}}
The company was rebranded as WizzFinancial by its new owners.{{cite news |url=https://www.zawya.com/en/markets/equities/delisted-finablr-to-move-ahead-with-business-plan-svpvo8a1 |title=Delisted Finablr to move ahead with business plan |publisher=Zawya |date=September 2, 2022 |last1=Darasha |first1=Brinda}}
Banking licence
Finablr had a European Banking licence through the French division of Travelex.{{cite web|url=https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.listofsupervisedentities202003.en.pdf?afd073a65797209ba3dd55ad4bc84251|title=List of supervision entities|publisher=Banking Supervision|access-date=14 March 2020|archive-url=https://web.archive.org/web/20200324040034/https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.listofsupervisedentities202003.en.pdf?afd073a65797209ba3dd55ad4bc84251|archive-date=24 March 2020|url-status=live}}{{cite web |url=https://www.dittobank.com/app-legal-notices/ |title=Legal Mentions - Ditto Bank Ditto |publisher=Dittobank.com |date=20 June 2014 |access-date=14 March 2020 |archive-url=https://web.archive.org/web/20190309005526/https://www.dittobank.com/app-legal-notices/ |archive-date=9 March 2019 |url-status=live }}