Walmart-Backed Fintech Scores Big Funding Round

Walmart is taking an all for One, One for all approach to fintech.

On Thursday, sources told Bloomberg that the big box retail titan led a $300 million funding round for One, the fintech startup in which it holds a majority stake, at a $2.5 billion valuation. Besides being your one-stop-retail-shop for everything, Walmart would like to be your virtual banker, too.

All in One

In 2021, Walmart crashed the fintech party by launching a joint venture with Ribbit, the prominent venture capital firm that has backed platforms like Robinhood and Revolut (Ribbit participated in Thursday’s funding round, too). Through a series of mergers and acquisitions, that platform eventually became One, an independent startup mostly owned by Walmart that offers products like debit cards and buy-now-pay-later services. Sources also told Bloomberg that when Walmart reissues its credit card with a new banking partner next year, it will be launched by One.

If Walmart intends to be the Bank of Walmart, it has certain built-in advantages: 

• One currently offers early wage access to Walmart’s 1.6 million employees. The company said it has 3 million monthly active users overall.
• Meanwhile, Bloomberg reports that One has a run-rate revenue of more than $200 million and is processing over $15 billion in payment flow.

One Day More: One is headed by former Goldman Sachs partner Omer Ismail, who previously ran Goldman’s ill-fated consumer banking unit. If Ismail wants to rub elbows with the masses, Walmart seems a much better fit.