Marco Tricarico is the Co-Founder and CEO of Switcho, the leading Italian fintech company specialising to expenses management, which was acquired by Mavriq (formerly MutuiOnline) in July 2024.
Last time we spoke, in 2021, Switcho had just completed a €2 million fundraising round, had 60,000 registered users and over €200,000 in revenue as of June 2021. How has Switcho evolved since then?
Marco: After 3 years, we have reached important milestones: we now have reached 1 million users and over 1,128,000 bills analysed. During this time, our service has changed and evolved significantly.
One of the most important developments on the product side was the launch of our insurance service at the end of 2021. Additionally, we’ve invested heavily in improving our mobile app, which has become a key strength compared to other market comparators and has played a major role in our user acquisition growth.
There are two other, perhaps more significant changes. The first relates to the energy market: in early 2022, the start of the conflict in Ukraine disrupted a market that had been stable for years. The dramatic rise in tariffs forced many previously passive consumers to confront higher bills, prompting them to seek online solutions to cut costs. This shift created a significant opportunity for us to promote our service, which stands out for its transparency, user-friendliness, and minimal bureaucracy, accelerating our market visibility and penetration.
Another important change has been the development of partnerships with banks. A key example is our integration with Intesa Sanpaolo in 2023. These partnerships with banking institutions have marked a major turning point for us, leading to a positive shift in our profitability, which has transitioned from negative to positive.
A crucial factor in the success of our banking integrations has been the user experience. We implemented a simple, seamless integration that allows users of our partner banks to access our service directly from their banking apps, with just one click and no need for additional registration. This has proven to be a win-win situation: the banks provide an added service within their app, we acquire customers at a lower cost, and users enjoy a smooth, hassle-free experience.
In summary, the market has grown, we’ve built valuable partnerships with banks, and we’ve continued to focus heavily on our mobile app. Thanks to this strategy, we’ve been able to differentiate ourselves from competitors in customer acquisition and maintain higher engagement from our users over the long term.
In July 2024, Mavriq (formerly MutuiOnline) announced the acquisition of 80% of Switcho, along with the simultaneous exit of the early-stage investors, at a valuation of €20 million. What is the rationale behind this transaction for Switcho? And for Mavriq?
Marco: The rationale for Switcho was to accelerate our growth by leveraging synergies, not only in terms of revenue but, more importantly, in terms of service complementarities. This acquisition has given us access to a comprehensive range of services across all regulated sectors, which would have been much harder, more time-consuming, and costlier to build independently, requiring far more resources.
For Mavriq, the goal was to enhance its portfolio by adding a player specialising in digital experience – an offering complementary to the services it currently provides its clients. Their target audience is more senior, and Switcho is seen as the ideal partner to help develop B2B2C solutions. Specifically, Mavriq views us as the Group’s expert in forging partnerships with banks, fintechs, and other service providers that are outside their immediate focus. Some of our competitors already have well-established strategies in these areas. In this context, the Switcho mobile app stands out as a particular strength within the Group.
Additionally, Mavriq is closely monitoring what we can achieve by consolidating this operation, with a focus on driving value and growth through the integration of our digital services and expertise.
How will Switcho continue to evolve and develop within the Mavriq Group?
Marco: We have decided to maintain our independence in terms of brand and labour policies. However, we’ve chosen to centralise certain administrative functions to streamline and optimise processes. We also work from Mavriq headquarters to facilitate integration projects and foster synergies between the two organisations.
From a governance perspective, the Board of Directors has undergone some changes, but as founders, we remain in our leadership roles to ensure continuity in the management of the business. The goal is to maintain as much operational stability as possible, while leaving the more administrative tasks to Mavriq, where they have significant expertise from managing over 20 companies.
In terms of financial management, we have centralised operations and are implementing a cash pooling system to optimise liquidity and improve cash management efficiency.
From the left: Francesco Laffi, Marco Tricarico, Redi Vyshka
Can you share some insights from the acquisition process you’ve just gone through? What advice would you give to entrepreneurs considering a potential acquisition?
Marco: M&A processes are lengthy. You often start with interviews, only to find yourself revisiting the situation a year later. When you decide to pursue this path, it’s never an immediate decision.
One thing that certainly helps during negotiations is having a positive EBITDA. In times like these, also venture capital funds are increasingly focused on the sustainability of the business. It’s crucial for them to see that with the right adjustments – often just one or two factors – the company can become profitable in the short to medium term.
That said, if we look at the private transaction market in Italy, our experience shows that there is a strong emphasis on companies that are EBITDA positive. Buyers typically base their valuations on EBITDA multiples, meaning the first requirement to enter these processes is to have a positive EBITDA and a business that generates cash.
As I mentioned, the process is long and complex, requiring sustained attention. One of the most important steps is choosing the right advisor. The person running the business is typically focused on day-to-day operations, even if they have a background in corporate finance. Managing an M&A transaction takes significant time and effort, which is why having a trusted advisor is essential.
Another key consideration is how you present your company to the other party. It’s not just about having a great product or offer; it’s also about engaging the right professionals to help you position your business in the best possible light.
In my view, the key to success is creating a competitive process that helps you secure the best deal. However, the “best terms” don’t always mean the highest payment or the most favourable earn-out. What really matters is finding the management team that aligns with your style and vision, ensuring a good fit with the other party.
Ultimately, it all comes down to the terms you set. If you’re aiming for a “hard” exit, it differs from a deal that involves future commitments from the founders, which requires a more thorough, all-around assessment. A competitive process enables you to find the right balance between these elements, allowing you to make a decision that is truly beneficial for you and your business.
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For more info on Switcho, visit: https://www.switcho.it/
Click here to read the first interview with Marco and the story of Switcho: LINK