A Floundering Fintech’s Risky Reboot

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With star backers like Leonardo DiCaprio and a planet-friendly mission, neobank Aspiration reached a valuation of $2.3 billion in 2021. Then growth stalled and its SPAC deal was delayed. Now it's hawking its services in the dubious carbon credits business.

. After all, fintech was red-hot, and the unicorn’s tree-hugging mission promised to plant a tree with Aspiration debit card purchases.

In mid-2021, Cherny had struck a deal to go public via a special purpose acquisition company that would bring in more than $400 million in fresh capital andBut as the stock market tanked in 2022, SPACs fell swiftly out of favor. One hundred and eighty of them were eventually canceled, says Julian Klymochko, who runs asset management firm Accelerate, which invests in SPACs. Meanwhile, growth at Aspiration’s digital bank stalled.

Under Cherny’s leadership, Aspiration had begun to shift its business model toward a niche of the environmental sustainability industry called carbon credits, or carbon offsets. The basic idea: Any company can mitigate the damage its business does to the environment by funding initiatives that will remove carbon from the atmosphere, such as planting trees.

“We are very much focused on delivering profitable, scalable businesses to our shareholders,” says CEO Albrecht, 40. “As we've looked at our ability to have an impact and create value for shareholders, the carbon business and carbon assets are very attractive for us.” has been revamped–it now leads with “Empowering business to change climate change” and advertises a mission to plant one billion trees by 2030.in revenue compared with $29 million from digital banking . But just as the California fintech is doubling down on this new mission, the future of carbon credits is in question, with experts saying carbon credits’ environmental impact has been grossly overestimated.

 

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Oh yes good ol Leonardo healing one ocean at a time in a $150M, 453’ mega yacht.

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