Tembo, which created an AI tool last year, expects that the acquisition will bolster its proposition that aims to help first-time buyers find alternative homeownership options through family and affordability boosting mortgages.
Nude Finance’s lifetime ISA can be used by potential first-time buyers to save towards a deposit and its platform allows users to track their progress. Savers can receive a 25 per cent bonus from the government on top of their savings to increase their deposit.
The acquisition
The acquisition has been approved by the Financial Conduct Authority (FCA), and will see Tembo acquire 100 per cent of the shares in Nude Finance.
Jenny Watts, chair of Tembo, will also become chair of the Nude Finance Board and Richard Dana, CEO of Tembo, will be responsible for the day-to-day management of the business. Crawford Taylor will step down as Nude CEO but continue to advise the team.
Tembo will continue to be supported by its investors including Aviva, Ascension and Fair By Design, Love Ventures and the McPike Family Office.
The firm said the transaction will allow Tembo to build on its success of last year and achieve double-digit monthly growth throughout 2024.
Dana (pictured) said: “We’re delighted to now be able to offer our customers access to an award-winning savings product. Crawford and his brilliant team have built an engaged and loyal customer base of future first-time buyers and we look forward to continuing to grow and develop the business in the future.
“We’ve already been working with Nude over the past year and there is huge synergy in helping savings customers as they navigate the mortgage and homebuyer process. The broader Tembo proposition puts home at the heart of personal wealth – for most people and their families their most treasured and valuable asset.”
Taylor added: “I started Nude to make a difference to people’s lives. Nude is a financial friend that’s really good with money, who’s there 24/7. The Nude team has built a unique proposition that is resonating in the market, changing the way people interact with the financial system.
“Nude helps people set a goal, engaging and motivating them and being with them every step of the way, starting with homeownership. Tembo has a very similar approach centred around home ownership, and the acquisition is a perfect fit led by three very talented founders.”
