News Savings And Investment

Savings app Chip completes a £2.6m private Crowdcube funding round

Chip currently has over 10,000 shareholders from previous fundraising efforts on the platform.

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The Chip team/Chip

AI-powered savings app Chip today announced the completion of a £2.6m private crowdfunding round on Crowdcube.

Over 4,000 investors took part in the raise and the initial £1m target was reached in just a few hours.

Chip claims its fundraising effort is the largest equity crowdfund to be completed in the UK since the lockdown began over a month ago (although Freetrade looks poised to challenge that next month).

The money will be used to help Chip continue its growth, as well as launch an FSCS-supported savings account through a partner bank.

According to the fintech, Chip’s customer numbers have increased by 40 per cent in the first three months of 2020 alone.

Similarly, Chip’s average weekly app downloads have jumped by 20 per cent from the end of last year to the first three months of this year.

Simon Rabin, CEO and founder of Chip, said: “We've seen unprecedented growth during these difficult times, which demonstrates that Chip is incredibly useful for putting money aside for safety net and emergency funds.”

“Off the back of this growth, we wanted to share the opportunity with our investor community, and have been overwhelmed by their response,” he added.

Since the start of the outbreak, Chip’s customers have been dipping into holiday and festival funds they had set aside and the ‘safety net fund’ has knocked ‘holiday’ off the top spot as the most popular goal set by savers. 

Luke Lang, co-founder of Crowdcube, said: “The raise with Chip shows that, despite the economic turmoil, there is still an appetite from communities and everyday investors to support startup and scaleup businesses.” 

“Investors see that Chip is a service that helps people manage their money and save and they want to give support to that movement,” he added.

At the end of March, it was revealed that Chip had scored FCA authorisation as an Authorised Payments Institution for its money-saving app. 

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