Greenlight, the fintech firm that pitches dad and mom on kid-friendly financial institution accounts, has raised $260 million in a Sequence D funding spherical that almost doubles its valuation to $2.3 billion.
The funding comes simply months after the Atlanta-based startup landed $215 million in funding at a $1.2 billion valuation. With the newest spherical, Greenlight has now raised over $550 million.
Andreessen Horowitz (a16z) led its Sequence D, which additionally included participation from return backers TTV Capital, Canapi Ventures, Wells Fargo Strategic Capital, BOND, Fin VC, Goodwater Capital, in addition to new traders Wellington Administration, Owl Ventures and LionTree Companions.
Because it launched its debit playing cards for youths in 2017, the corporate has managed to arrange accounts for greater than 3 million dad and mom and kids, who’ve saved greater than $120 million via the app. That’s up from 2 million dad and mom and children having saved $50 million on the time of its September 2020 increase.
General, Greenlight says it has “greater than tripled” YoY income, greater than doubled the variety of dad and mom and children on its platform and doubled the dimensions of its group throughout the previous yr.
“Greenlight has shortly emerged as a frontrunner within the household finance class,” stated Andreessen Horowitz common companion David George, who will be part of Greenlight’s board of administrators, in a written assertion. “Greenlight was constructed to assist dad and mom increase financially-smart youngsters, and with its breakthrough mixture of easy-to-use cash administration instruments and academic sources, the corporate is well-positioned to grow to be probably the most beloved and trusted manufacturers for households world wide.”
The firm pitches itself as greater than only a debit card, with apps that give dad and mom the flexibility to deposit cash in accounts and pay for allowance, handle chores and set versatile controls on how a lot youngsters can spend. In January, Greenlight launched its instructional investing platform for youths — Greenlight Max. By means of that platform, youngsters can analysis shares with evaluation from Morningstar and really make actual investments in corporations like Apple, Tesla, Microsoft and Amazon so long as their dad and mom approve.
As TechCrunch beforehand reported, it’s a doubtlessly large enterprise that may lock in an entire technology to a monetary providers platform, which is probably going one cause why an entire slew of corporations have launched with the same thesis. There’s Kard, Step, Until Monetary and Present pitching comparable companies within the U.S. and Mozper not too long ago launched from Y Combinator to carry the mannequin to Latin America. (Step and Present additionally introduced large rounds as we speak, whereas Until Monetary introduced its seed spherical final week. Notably, a16z additionally led Present’s increase).
“Our imaginative and prescient at Greenlight is to create a world the place each baby grows as much as be financially wholesome and blissful,” stated Tim Sheehan, co-founder and CEO of Greenlight. “Immediately’s financing will allow us to carry much more worth to households as we proceed to introduce new progressive merchandise that shine a light-weight on the world of cash.”
Greenlight says it would use the brand new capital to speed up product improvement so as to add extra monetary providers to its platform in addition to to speculate additional in strategic distribution partnerships and geographic growth. It additionally plans to rent one other 300 staff over the subsequent two years, with an emphasis on engineers.