By Aisling Finn on Friday 1 May 2020
The New York-based fintech also recently hit $1bn in assets under management on its platform.
US-based investment app Stash has announced the closure of a $112m Series F funding round and was led by money marketplace LendingTree.
According to TechCrunch the close of the latest funding round could put the valuation of the company at around $812m.
Other notable investors in the round include T. Rowe Price Associates, Inc., Breyer Capital, Goodwater Capital, Greenspring Associates, Union Square Ventures and Entree Capital.
Stash’s goal is to help everyday investors “access to the tools, guidance and confidence” needed to invest and grow personal wealth.
As well as its investment platform, the banking service also offers basic bank accounts, retirement accounts and custodial accounts for parents looking to invest on a child’s behalf.
In the first quarter of 2020 Stash also said it saw a 100 per cent increase in weekly customer deposits across both its banking and investment platforms.
The New York-based fintech has 4.5m users and hit a milestone of over $1bn in assets under management on its platform.
Brandon Krieg, co-founder and CEO of Stash, left his job on Wall Street after realising that “most financial systems can be fundamentally unfair to smaller investors” so set out on creating an accessible investment platform for America’s middle class.
Krieg said: “We are very fortunate to bring together world-class investors, to help accelerate Stash’s goal of bringing digital banking, investing plus financial education and advice to the millions of middle-class Americans working hard every day to make ends meet.”
“This massive group has attempted to make financial progress within a system that simply does not serve their best interests or meet their needs. It’s time for them to reconsider the current financial services industry as the ‘status-quo’ and take control of their financial life,” he added.
The average age of a Stash user is 29 and has an average annual income of less than $50,000, with the average investment being $28, although users can invest as little as $1 on the platform.
Stash charges a flat monthly subscription fee ranging from $1 to $9 depending on the customer’s requirements.