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In the United States, a new start in Fintech is approaching the status of unicorn. MoneyLion, headquartered in New York, provides clients with financial advice and access to loans and other services, announced today the raising of $ 100 million in a new step to accelerate growth in the US market.
The million-dollar Series C for the six-year-old start-up was led by Edison Partners and Greenspring Associates, MoneyLion said. MetaBank and FinTech Collective also participated in the round, while Capital One made a strategic investment.
MoneyLion also raised $ 60 million in venture capital and debt in the second quarter of 2018, a spokesman told TechCrunch. This has not been disclosed before. This means that MoneyLion has raised more than $ 200 million so far, and that its current cycle values startup at nearly $ 1 billion, said one familiar with the issue.
MoneyLion, which describes itself as a mobile bank, operates a loan, savings and wealth management application. The all-in-one platform allows users to log all their bank accounts and credit cards and receive personalized advice on the best way to spend their money and secure loans from the application.
The start-up earns most of its money from subscription services – which cost $ 19.99 a month – and sells to consumers, TechCrunch told Dee Choubey, founder and CEO of MoneyLion, in an interview. The subscription offer includes banking activities, basic investment management and access to financing.
Choubey did not specify the number of MoneyLion subscribers, but noted that more than 5 million customers were using this app. This includes free users, who can access free access to some essential banking features.
MoneyLion will use this new capital to refine its subscription offerings, its financial model and add new features so that its existing users are attracted to the platform, Choubey said. Last year, the app offered more than $ 12 million in cashback rewards to its members and 70% of its users saw their credit score climb by 30 points.
"You will see that we are investing heavily in brokers' capabilities, training capabilities and investment capabilities in equities. We think we are approaching financial services like Netflix discusses the content. We want users to stay connected to the platform, "he said.
In an interview with TechCrunch, Chris Sugden, managing partner at Edison Partners, said that MoneyLion has been focused on integrating all of the bank offers on its platform over the past year. year. And it is these "comprehensive, bundled and first-clbad opportunities for banking and financial literacy" for clients who have attracted him to the startup, he said.
As traditional banks move slowly to meet the growing financial needs of their customers, a growing number of Fintech startups have emerged over the years around the world to bridge the gap. In many parts of the world, including the United States, "neo-banks" help small and medium-sized businesses automate their finances and access many additional features.
On some fronts, MoneyLion is competing with a handful of players such as Chime, another mobile bank that raised $ 200 million earlier this year, the Acorn investment service, which has more than 3 , 5 million users, and the online lender SoFi, who quietly raised $ 500 million. months ago.
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