A shareholder of fintech startup Curve has launched a legal battle challenging the company's £125 million acquisition by a major UK banking institution. The investor is seeking to block or overturn the deal with Lloyds Banking Group, raising questions about valuation and shareholder approval processes.

The disputed transaction, announced earlier this year, would see one of Britain's largest retail banks absorb the digital payments platform. However, at least one backer believes the sale undervalues the company and may not have followed proper procedures.

Curve, known for its card-consolidation technology that lets users link multiple payment cards to a single piece of plastic, has attracted significant venture funding over the years. The legal challenge could delay or complicate the acquisition's completion, potentially forcing renegotiation of terms or additional shareholder votes.

Neither Curve nor the acquiring bank has issued detailed public responses to the legal filing. The case highlights growing tensions in fintech M&A as valuations compress and early investors seek better exit terms.