The savings app is heading for its Series A fundraise, alongside a £10m crowdfunding round.
Fintech savings app Chip is aiming to become the UK’s next unicorn as it heads for its Series A, including a £10m crowdfunding round.
Chip raised £7m back in November 2019. Since then it has boomed thanks in part to a higher demand for savings and investment services during lockdown.
The new funding round, AltFi understands, will value the fintech between £100-200m.
Simon Rabin, Chip's CEO and founder told AltFi last week that the fintech sector has been focused on banking and spending apps such as Monzo and Revolut in recent years but there is still an “absolutely enormous opportunity” to provide that same level of consumer-focused experience for savings and investments products.
“That just doesn't exist right now but is an incredibly exciting opportunity,” he said.
Such a gap leaves the potential for growth to widen open for the likes of Chip, Rabin says.
“We see a potential hundred million customers across Europe and a market of £30 trillion of assets in 20 years. I see no reason why Chip can't be amongst the other fintech. Unicorns. We very much aspire to be that next fintech unicorn.”
The firm will be crowdfunding as part of the Series A, its third time opening up its fundraising to the crowd, where it will aim to raise £10m from the retail market.
“Crowdfunding has been a key part of the business to date and has enabled us to grow with our customers. It's an integral part of what we've become,” Rabin said.
“What the last six months has validated is that there's enormous demand in the market for a mobile-first digitally native challenger platform for savings and investments.”
“We're very confident we're going to fill that space with the tools to help people save as much as they can and give them seamless access to the best possible returns for short term saving, long term savings investments, and eventually pensions as well.”
Chip will be introducing its first investment products later this year. It is planning to offer access to funds and ETFs but not direct equities under its premium account offering.
“The vision is to give customers seamless one click one swipe access to the best available returns in each in each asset class or the best and the best possible returns to meet their personal savings or investment objectives,” Rabin said.
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