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Investor Action Intensifies Over Curve Sale
A fresh battle has erupted inside Curve as IDC Ventures, one of the fintech’s largest external backers, moves to remove chairman Lord Stanley Fink. The development follows weeks of discontent among shareholders over the company’s pending £120 million sale to Lloyds Banking Group.
IDC, which holds about 12 percent of Curve, has expressed dissatisfaction with both the process and the proposed distribution of proceeds. The firm is now pressing for Fink’s removal, arguing that its concerns have been dismissed by the board.
This new confrontation adds another layer to the turmoil surrounding Curve’s sale. Earlier this month, FinTech Weekly reported exclusively that investors were deeply frustrated with the deal’s valuation and that several directors had stepped down in protest. The latest move by IDC confirms how tensions have escalated since that revelation.
Background to a Disputed Deal
Curve, founded in 2016, built its reputation by offering a digital wallet that combines multiple cards into a single platform, while adding transaction optimization and rewards. Over the years it raised more than £250 million from a mix of venture capital and institutional investors.
By 2023, a Series C round valued the company significantly higher than the £120 million now being offered by Lloyds. For backers like IDC, the gap between earlier expectations and today’s reality is stark.
In a communication to stakeholders, Curve’s leadership recently acknowledged that the sale price was disappointing but warned that the company could run out of funds without a deal. That admission reflected the financial strain facing the business, even as it facilitated billions in annual transactions for its users.
When FinTech Weekly first reported on September 10th that investors were dissatisfied with the Lloyds deal, the story centered on falling valuations and board exits. At the time, sources close to the negotiations described a sharp contrast between Curve’s past ambitions and its current circumstances.
The emergence of IDC’s public campaign confirms those earlier findings. What was once investor frustration has now turned into open conflict, with threats of legal action if concerns are ignored. The dispute highlights the growing friction that often surfaces in fintech consolidation: banks may secure valuable technology, but investors are left with losses.
The Role of Lloyds
For Lloyds, acquiring Curve is a strategic play. The bank wants to enhance its payments infrastructure, reduce reliance on Apple Pay and Google Wallet, and offer customers new digital tools. The transaction fits into a broader strategy of investing in fintech as traditional banking faces pressure from Big Tech and new entrants.
However, IDC’s objections introduce uncertainty. The investor has enlisted legal advisers and has raised its concerns directly with both Curve and Lloyds, though it says neither has engaged meaningfully. If disputes continue, the sale could be delayed or complicated by litigation.
Governance in the Spotlight
Beyond valuation, IDC has raised questions about governance. The investor challenged the reappointment of Lord Fink as chairman after his removal in July, calling the situation untenable. For IDC, the board’s approach to the transaction and its refusal to share details about implementation without broader shareholder support represent a breakdown in accountability.
This public dispute underscores how governance challenges can intensify during corporate sales, especially when outcomes diverge sharply from prior valuations. For fintech companies that raised significant sums during periods of high growth, the risk of investor backlash has become more pronounced as market conditions change.
What It Means for FinTech Consolidation
The Curve case is more than a single transaction; it reflects wider trends in fintech. Traditional banks are acquiring technology firms to accelerate digital transformation, while start-ups facing financial pressures see sales as lifelines. Yet the outcomes often fall short of investor expectations, creating space for disputes like the one now unfolding around Curve.
In this context, FinTech Weekly’s earlier reporting gains further weight. The exclusive revealed investor disappointment and board-level unrest. IDC’s move adds legal and governance challenges, making Curve’s sale not only a test of Lloyds’ strategic ambitions but also a case study in how investor confidence can unravel during consolidation.
The Road Ahead
With the acquisition expected to be finalized soon, IDC’s opposition creates uncertainty over timing and structure. The firm has vowed to protect its interests, even if that means prolonged legal battles. Curve’s leadership, meanwhile, has stayed largely silent, deepening the perception of a rift between management and its backers.
For Lloyds, the stakes are high. Success would secure a valuable platform to compete in digital payments. Failure could expose the bank to reputational risks and complicate its fintech strategy. For investors, the outcome could determine whether their years of support end with diminished returns or with at least some recovery of value.
As FinTech Weekly’s reporting has shown, this deal is far more than a straightforward acquisition. It is a turning point for Curve, a stress test for investor trust, and a reminder that fintech consolidation often carries as much conflict as opportunity.
