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Official: Old Mutual acquires local finance startup 22seven

Published by on Jan 31st, 2013, 6 Comments

There have been rumblings in our local community that Old Mutual have acquired local finance startup 22seven.

BWB can now confirm that this is true, based on the below internal memo sent to Bandwidth Blog. 

The acquisition comes as part of Old Mutual’s strategy to develop digital support for its customers that now wholly-owns the Cape Town based startup. 

We previously video interviewed Christo Davel, the founder of 22seven about his new company.

Davel has now officially commented on the acquisition saying, “We’re fired up about where we can now take 22seven, and I don’t just mean geographically. We’ve always had big plans for our service, and what we think it’s capable of doing. With Old Mutual’s support, the evolution and enhancement will happen much faster.”

Read the memo below:


Hi (removed)

I’m writing to tell you that 22seven has been bought by Old Mutual. The deal will be announced to the public today.

I’m guessing that your reaction is one of either “awesome”, “who cares?” or “wtf?” Well, I can honestly say that my feeling about it is the first of those, and not for reasons some cynics may think.

There are two reasons my team and I are so excited, and they both pertain to the big, bold ambitions we’ve always had for 22seven. One is that they don’t change at all. Old Mutual shares them and is completely behind them. We would never have sold if they weren’t. Reason number two is that the deal gives us fuel for our rocket. With Old Mutual’s support, we can go much further, much faster. And that’s a huge deal.

If you’re in the “who cares” camp, I’m comfortable with that. It’s business as usual and nothing changes about our service, other than that we’ll be taking bigger leaps forward, sooner.

If you have reservations about the deal, I want to reassure you that, although we’ve sold, we haven’t sold out. We didn’t compromise to make it happen. We will still be objective. We will not suddenly start spamming you or trying to sell you anything. We still want to help you do more with your money, whoever that money may be with.

22seven is not just a business for us. We’ve been building it for almost four years. It is very personal, and very much a child to us: we want it to grow, to mature, to be all it can be, and, hopefully, to do some good. This deal will help make that all happen.

If you have questions or concerns, please feel free to contact me personally. If not, we hope you enjoy the ride with us for a very long time.

Regards
Christo Davel
Founder and CEO

Comments

  • Ohidonot

    This aquisition serves as proof of the stupidity and ignorance of both companies.

  • Charl Norman

    Share your thoughts, why do you say that?

  • PaulC

    Jealousy making you nasty? Or just ignorance?

  • http://www.bandwidthblog.com Minnaar Pieters

    How so @b8991c06163e88f7f28af0e6ef94db2e:disqus ?

  • Ohidonot

    227 has a business model which, for SA, is DOA. Why? It is a service the majority of people do no want due to either cost, privacy or security concerns.

    OM is not only a publicly traded company, but also a financial services provider which include savings products which are affected by their overall financial performance. Therefore, poor financial decisions by OM impacts not only their shareholders, but also holders of certain financial products.

    I do apologise for using harsh words in my original post, but when obviously poor decisions are made affecting my financial health, it is upsetting.

  • Charl Norman

    Thanks for replying, very interesting take on things. Will be good to see how this plays out.

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