- Touch Ventures (TVL) sells its stake in open banking fintech Basiq for $14.2 million
- It forms part of a broader transaction with Cuscal, which aims to acquire a controlling interest in Basiq
- Touch Ventures CEO Hein Vogal says the company is delighted to “deliver this result in what is currently a very difficult market for growth companies”
- The sale helps bolster TVL’s cash position, with further details to be confirmed upon the completion of the transaction
- Shares in TVL are up 5.3 per cent, trading at 10 cents at 2:23 pm AEDT
Touch Ventures (TVL) has agreed to sell its investment in open banking fintech Braavos Corporation (Basiq) as part of a wider transaction with payments giant Cuscal.
Cuscal is acquiring a controlling interest in Braavos Corporation, the parent company of Basiq.
Touch Ventures expects to receive around $14.2 million as part of the transaction.
The company increased Basiq’s worth by $4 million, representing a 39.2 per cent increase from the carrying value on January 31, which was $10.2 million.
Touch Ventures said the sale of its investment would result in an improvement of the company’s cash position, with further details to be revealed on the completion of the transaction.
“We are delighted to report this result to our shareholders, demonstrating the value of our investment in Basiq,” Touch Ventures CEO Hein Vogel said.
“It has been a privilege to work with Damir Cuca and the team at Basiq to deliver this result in what is currently a very difficult market for growth companies.”
The Cusco buyout of Basiq provides an exit for several other powerful investors, including Visa, Westpac (WBC) venture capital business Reinventure Group, Afterpay-backed AP Ventures, and NAB’s (NAB) venture investment arm.
Shares in TVL were up 5.3 per cent and trading at 10 cents at 2:23 pm AEDT.