Walmart and investment firm Ribbit Capital are reportedly leading a funding round of more than $300 million for FinTech startup One, which is majority-owned by Walmart.
The round, which has not closed, would value One at $2.5 billion before the new money is raised, Bloomberg reported Thursday (Dec. 12), citing an unnamed source.
Reached by PYMNTS, Walmart declined to comment on the report.
Neither Ribbit nor One immediately replied to PYMNTS’ request for comment.
One aims to provide financial services to Walmart’s hundreds of millions of customers and its 1.6 million employees, according to the report.
The FinTech fully rolled out its products in Walmart’s stores about two years ago and now offers installment loans, debit cards, payments services and, for the retailer’s employees, early wage access, the report said.
One will launch Walmart’s credit card when the retailer issues that card with a new banking partner in 2025, per the report.
It now has a run-rate revenue of over $200 million and processes more than $15 billion in payment flow, according to the report.
Walmart announced in January 2021 that it was creating a FinTech startup in tandem with Ribbit Capital, which had backed online stock market trading platform Robinhood and had investments in Credit Karma and Affirm.
The retailer said at the time in a press release that “the venture will bring together Walmart’s retail knowledge and scale with Ribbit’s FinTech expertise to deliver tech-driven financial experiences tailored to Walmart’s customers and associates.”
One began offering bank accounts and related services to Walmart employees in 2022.
It was reported in April that One had begun offering buy now, pay later (BNPL) loans at some locations, making it available for purchases ranging from $100 to as much as a few thousand dollars in categories like electronics and jewelry.
Earlier this year, Walmart Chief Financial Officer John David Rainey told an analyst that financial services is one of the areas in which “maybe we punch below our weight,” according to Thursday’s report by Bloomberg.
“I think financial services is one of those within the U.S., and so I’m looking forward to sharing more about that progress in the coming years,” Rainey said, per the report.
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