Meitav Invests in Pension Operations, Acquires Stake in PielaPay
Translated & summarized from Calcalist by baba
Investment house Meitav has acquired a 25% stake in PielaPay, a startup that operates a digital system for employers to manage pension deposits. The deal, which includes performance-based valuation increases, could see PielaPay valued at up to 200 million shekels. Founded in 2024, PielaPay aims to process over a billion shekels in pension deposits within three years. This move marks Meitav's expansion into pension operations and infrastructure connecting employers to pension funds.
The story in 5 lines · by baba
- Meitav acquired a 25% stake in PielaPay, a company managing digital pension deposits for employers.
- The deal's valuation could reach up to 200 million shekels based on PielaPay's future revenue targets.
- PielaPay, founded in 2024, projects processing over 1 billion shekels in pension deposits within three years.
- The investment signifies Meitav's expansion into pension operations and related financial infrastructure.
- PielaPay's system centralizes pension deposit processes, potentially challenging traditional pension arrangement agencies.
Investment house Meitav is entering the pension operations sector with its acquisition of a 25% stake in PielaPay, a company operating a digital system for employers that centralizes pension deposit processes. The deal was reportedly valued in the millions of shekels, with a tiered mechanism that could see the valuation reach 100 million shekels if revenue targets are met, and potentially up to 200 million shekels later on. PielaPay's system calculates contributions from salary data, generates required reports for the Capital Markets Authority, transfers funds to institutional entities, and provides feedback to track deposits until funds are actually received. The company, founded in 2024 by Yariv Yanai, Odelia Cohen, and Simon Chulsky, is in its early growth stages with limited revenue and no profitability. PielaPay projects that within three years, over a billion shekels in pension deposits will be processed through its system. For Meitav, this investment represents a significant expansion beyond its core investment management, which currently includes securities trading via Meitav Trade and credit activities through Peninsula and Meitav Finance. The acquisition could provide Meitav with a foothold in the infrastructure connecting employers to pension and provident funds, potentially strengthening employer relationships and serving as a future channel for financial product distribution and customer retention.