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2024: Bongo R&D bought 70% 'Money Forward'
At the end of February 2024, it became known that the software developer Bongo R&D received minority shares in the fintech company Money Forward. The transaction was carried out within the framework of the planned "structural changes in order to improve the ease of management."
"Money Forward" is a specialized application for paying salaries to an employee at any time upon request. The project was launched in December 2019 by the founder of the Worki job search service Pavel Guzhikov and venture investor Konstantin Stiskin. They invested $200,000 of their own funds in the platform. In turn, Bongo R&D is a technology company that helps launch online banks, Internet projects and mobile applications into commercial operation. It was founded in 2014 by Pavel Guzhikov.
It is known that before the transaction, Bongo R&D LLC owned 59.14% of the fintech service. As part of the agreement, Nikolay Obraztsov sold his shares - 7.4%, Alexander Kostylev - 1.35%, Nail Sharipov - 1.34%, Natalya Evstratyeva - 0.8%, Anton Vorobyov - 0.51%. As a result, the participation of Bongo RD LLC reached 70.54%. Another 16.6% are at the disposal of Yevgeny Nekrasov, 12.8% - Pavel Guzhikov.
 | This is not a deal yet, it is a buyout of minority shareholders (operating team) in connection with the achievement of plans and their transfer to an expanded motivational program, says Guzhikov. |  |
The founder of the analytical platform DsightArseny Dabbach estimates Money Forward at 925.4 million rubles. In his opinion, Bongo RD increased its stake in the value of the company's losses. According to him, this buyout could help the company break even, to further develop the rapid growth that occurred in 2022. DSight believes that if the startup has high results and profits, Bongo RD will buy an even larger share.[1]
2020: Raising $1m investment from Target Global
On August 19, 2020, it became known that the fintech company Money Forward attracted $1 million in investments from a venture capital fund with Russian roots Target Global. Also, a startup that allows employees to receive a salary on any day, unnamed partners opened a credit line for 1 billion rubles for business development.
The funds received "Money Forward" intend to spend on scaling the service throughout Russia for the country's largest employers. By August 19, 2020, Money Forward clients include 13 large companies, including Visa, MTS Bank, Modulbank, Excelsior and Integrati . The startup does not disclose the number of active users. In the spring of 2020, it was reported that the total staff of connected companies exceeded 13 thousand employees.
| | Such services have a positive impact on the economy, especially in the post-crisis period. Similar companies abroad reduce the turnover of personnel in companies and allow employees to use their own funds, and not loans and microloans at significantly higher rates, "said Mikhail Lobanov, managing partner of Target Global. | |
According to him, there are similar services abroad: American Dailypay and Earnin, as well as British Wagestream.
As noted in Target Global, the system of paying salaries on demand increases the motivation of employees and helps them not to resort to the services of credit institutions. The service itself earns a fixed commission for processing a transfer request through a mobile application.
The strategic task of the fintech company "Money Forward" is the creation of a global solution that solves the problems and tasks of employees, thereby having a positive impact on the business of employers, which, in turn, has a positive effect on the development of the economy in the country.[2]
2019: Service launch after beta testing
In December 2019, a full-scale launch of the Money Ahead service took place in Russia, which allows employees to receive salaries at any time, and not on the dates set in the companies.
Users can withdraw money earned to date with a commission from 50 to 700 rubles, depending on the amount requested. For employers, this service remains free.
An organization wishing to use the platform must enter into an agreement with it and integrate it with its accounting system. Employees write a statement about the transition to service through "Money Forward."
At the time of salary payment, the employer transfers money to a nominal account. The service transfers them from the nominal account to the employee account.
The application also helps employees interact with accounting - to understand what and what payment is assigned, as well as when it is most profitable to take a vacation or sick leave.
According to the creators of the project, it will help employees cover unscheduled costs without resorting to loans, and employers - to increase the motivation of employees, reduce turnover and the burden on accounting.
The company said in a statement that the proportion of people quitting large companies in favor of those places where it is possible to receive tips daily instead of waiting for a salary twice a month is growing.
Beta testing of the service lasted several months, in December 2019 it was completed. By this time, five companies had signed an agreement with Money Forward, and negotiations were underway with another 15.
The Money Ahead service was created by the founder of the Worki job search service Pavel Guzhikov and investor Konstantin Stiskin. According to Guzhikov, working on Worki gave him an understanding of how people lead daily life in Russia.
| | Access to money already earned is an absolutely natural phenomenon in the modern era of consumption. We will also develop the financial literacy of the population, "he said.[3] | |
Notes
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