ESG Investing Alert: Aspiration Set To Go Public Via $2.3 Billion SPAC Merger

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Environment, Social and Corporate Governance, or ESG, considerations are now a major influencing factor when it comes to investment decisions. New financial technology companies are embracing the movement around ESG investing, among those being Los Angeles-based digital bank Aspiration Partners.

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Forbes reported that Aspiration has become the first publicly traded fintech firm focused primarily on socially responsible spending, saving and investing. The company also offers its own managed IRAs and taxable accounts investing in fossil-fuel-free companies.

The company announced a merger last Wednesday with InterPrivate III Financial Partners, a publicly-traded special purpose acquisition company (SPAC). This transaction values Aspiration at $2.3 billion, more than double its last private-market valuation in May 2020, according to Forbes.

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The ESG movement has been gaining momentum over the last several years. Bank of America reports ESG assets grew to a record $329 billion in July, more than double year-over-year, Forbes noted.

“Aspiration is in the business of fighting the climate crisis. We help people and businesses build sustainable impact into what they do every day by making it easy, automated and powerful, whether it is in the ways people spend and save their money or the ways businesses engage their customers,” said co-founder and CEO Andrei Cherny in a statement on Wednesday.

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Like other fintech firms, Aspiration saw massive growth during the pandemic. Its customer base has more than doubled to five million over the past year, noted Forbes, and the company says revenues are on track to grow seven-fold in 2021 to more than $100 million. InterPrivate III and other investors will give Aspiration up to $412 million in cash to put towards company growth.

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Last updated: August 23, 2021

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Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.
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