Correction: The original version of this article used the wrong multiple in giving perspective on Dave's pro forma enterprise value. It should be 9.4 times expected revenue in 2022.

Dave, an online banking app that is backed by billionaire investor Mark Cuban, plans to go public through a merger with the blank check company VPC Impact Acquisition Holdings III (VPCC).

The deal includes up to $254 million of cash held in VPC Impact's trust account and a $210 million concurrent private investment in public equity (PIPE) led by Tiger Global Management, with additional participation from Wellington Management and Corbin Capital Partners.

The deal gives Dave a pro forma enterprise value of $3.6 billion, which equates to 9.4 times expected revenue in 2022.

As a digital banking service, Dave is committed to improving the financial health of its customers. The service allows customers to cover bills earlier by giving them small advances on paychecks and then allowing them to pay these back without interest or a credit check when their check arrives.

A pleased-looking young man on his smartphone while sitting near the laptop on a desk.

Image source: Getty Images.

The banking app also helps users build credit by reporting customers' rent payments to major credit bureaus. It charges no overdraft fees, no minimum balance fees, and no ATM fees from 32,000 MoneyPass ATMs. There are more than 10 million users on the app.

"We believe the legacy financial system has failed to deliver and today, more than 150 million people need our help to build financial stability," Jason Wilk, CEO of Dave, said in a statement.

The company reported revenue of $122 million and operating income of $5 million in 2020 although it has not yet completed its 2020 audit. In 2023, Dave projects to generate more than $530 million in revenue and $29 million in earnings before interest, taxes, depreciation, and amortization (EBITDA).