Crédit Mutuel Arkéa had bought 86% of the shares in the Leetchi company in September 2015, while the online fundraising startup was brilliant and claimed 1.5 million users worldwide (figures for April 2014). Today, the competition is much more important and the model of the company has become a sinkhole of 3.6 million euros in the year 2020 alone.
In information noted by The echoes, we learn that the French bancassurance group would have mandated Deutsche Bank to find a buyer for Leetchi and to part with its majority stake in the company. A step back in fintech and a real change in strategy.
How did Leetchi come to this? In three years, it will have lost 6.7 million euros to Crédit Mutuel Arkéa, which was already investing 60 million euros five years ago to take decision-making power.
The fault of the new players, in particular neobanks and online banks. The principle of an online pot could quickly be copied elsewhere. Banking institutions with multiple sources of income have been able to offer their fundraisers completely free and without asking their customers to register for a third-party service.
Leetchi has obviously offered a free formula to please its users looking to contribute for a birthday, an event, a trip … all without paying between 1.9 and 4% commission to the platform, which it usually asks . But adoption was not enough.
Crédit Mutuel Arkéa’s change in strategy does not stop there and the group will also detach itself from its fintech MangoPay, which is dedicated to online payment and marketplace solutions for businesses.
The echoes quoted Julien Carmona, the new president of the mutualist group, who indicated “Analyze the portfolio and the strategy” in the face of new opportunities in the fintech landscape. In other words, Crédit Mutuel Arkéa does not want to abandon new innovative startups. To the warned eye, be careful not to invest in another financial abyss.