Folio, a banking app which automates small amounts of users’ savings for specific goals, has stated that it will be closing operations this month after it failed to meet its fundraising target.
The platform had planned a £320k raise as the first ever savings app to launch on the Crowdcube platform in July last year. Folio had previously raised funds from investors including Kapital Bank, and had stated that the funds were to be used for bolstering marketing, expanding its partner programme and driving user acquisition.
Folio currently maintains savings accounts for around 10,000 users, backed by Barclays PLC. It is not known how much the app currently holds for its users, however Folio reported holding over £180k for 4,000 users at the time of its fundraising attempt.
The Folio app was removed from UK app stores on January 1st, and new deposits were ceased two days later. Folio has stated that all funds will be manually transferred back to their owners by January 10th.
Speaking to users in his final statement, Folio co-founder and CEO Marvyn Halfon said: “First of all, I would like to thank you for using FOLIO and supporting us over the past two years. We hope we’ve been able to help you achieve your financial goals, one step at a time.
“I wanted to inform you that FOLIO will be shutting down UK operations in the coming weeks. It was an incredibly hard decision as you and 10,000 other people have trusted us to make saving more achievable and fun.
“Rest assured, all funds remain held in protected saving accounts with our partner, Barclays, and are available for withdrawal at any time. The safety of your money has always been an absolute priority and it will remain one until our last day of operations.”
The platform has said, however, that it will be working on a new project in the coming weeks.