2023-08-16 22:33:17
August 17, 2023 Today at 12:31 AM
Entrepreneur Davy Kestens is negotiating the possible sale of his fintech Cake. It has just seen its main client, Argenta, withdraw.
Three years following rising to fame with his fintech company Cake, Limburg entrepreneur Davy Kestens is in talks with a potential buyer. This possible sale comes as the fintech, which has changed course several times, has yet to meet expectations. At the end of last year, Cake dipped in the red up to 3.3 million euros.
Thirty business angels have injected several million and fear that Cake will suffer the same fate as Sparkcentral.
Davy Kestens, 35, who rose to fame creating digital marketplace Sparkcentral, first introduced Cake as a low-cost alternative to traditional banking apps. Cake’s technology allowed consumers toaccess all their bank accounts in a single app and included budget management applications. But as Cake was attracting fewer users than expected – major banks started offering similar services – the company changed tack and unplugged the app.
“Below expectations”
Now, Cake offers its services to retail businesses and banks behind the scenes. The Antwerp banking group Argenta was Cake’s only banking partner. But this partnership is coming to an end. “The collaboration with Cake fell short of expectations and was therefore not profitable”, explains Christine Vermylen, spokesperson.
It remains to be seen what a takeover of Cake means for the company’s lenders. Thirty business angels have injected several million and fear that Cake will suffer the same fate as Sparkcentral. When it had to be sold to competitor Hootsuite, most investors saw most of their stake going up in smoke. If Cake changes hands at too low a price, such a scenario might repeat itself, observers say.
1692228932
#Founder #Davy #Kestens #set #leave #fintech #Cake
