The National Australia Bank Ltd (ASX: NAB) share price closed higher on Tuesday.
This comes after the bankâs venture business appeared to be going in for a second round of providing capital to payments technology provider DataMesh.
At market close, the banking giantâs shares finished the session up 0.97% to $30.28 each. Meantime, the S&P/ASX 200 Index (ASX: XJO) also gained 0.65% on the day.
NAB back for seconds?
The NAB share price enjoyed a day in the green following a recent report by the Australian Financial Review.
According to the publication, DataMesh is seeking to raise $15 million from NAB as part of its $115 million pre-money valuation.
The term âpre-money valuationâ refers to the value of a company before it goes public or receives other investments. This can be external funding or financing from venture capitalists, private equity investors, or corporate investors.
DataMesh touts itself as a ground-breaking technology company that helps merchants deliver a seamless in-store and online experience. It provides low-cost and flexible payment terminal solutions integrated with leading point-of-sale systems.
Last year, DataMesh secured $12 million in a pre-Series A funding round which included NAB Ventures as a small investor.
This time around, it is expected that NAB will write another cheque to DataMesh.
The remaining amount will likely be covered by other strategic investors with fintech experience.
NAB share price summary
Despite backtracking 1.4% in the past month, the NAB share price has risen by 5.24% in 2022 so far.
The bank’s shares reached a 52-week high of $33.75 on 21 April, before investors took profit off the table.
Itâs worth noting that even at todayâs prices, the companyâs shares are trading above pre-COVID-19 levels.
NAB commands a market capitalisation of approximately $96 billion, making it the fourth largest company on the ASX.
The post Why is NAB investing in this Aussie payments start-up? appeared first on The Motley Fool Australia.
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More reading
- Billions in liabilities could be set to hit CBA and other ASX banks: expert
- Are NAB shares a better ASX 200 bank to buy than CBA right now?
- Why is the NAB share price diving more than the other big 4 ASX banks today?
- Why rising rates are a ‘sugar hit’ for ASX 200 bank shares: Macquarie
- NAB shares offer 15% upside and growing dividends: broker
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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