GoHenry raises $40m as it plots UK and US expansion

The family-focussed fintech launched in the US back in 2018 and is planning to use the fresh cash to expand across North America. 

Kid-friendly fintech GoHenry has closed a $40m financing round and has announced plans to strengthen its presence both here in the UK and across the pond in the US. 

The round, which was led by US-based growth equity firm Edison Partners, saw involvement from the likes of Gaia Capital Partners, Citi Ventures and Muse Capital.

GoHenry’s latest funding marks the fintech’s first institutional raise, with the previous $30m raised by the firm coming from friends and family and via equity crowdfunding, with there being around 5,000 GoHenry shareholders as a result. 

Alex Zivoder, CEO of GoHenry, said: “For too long, kids have been locked out of the digital economy and parents lacked the tools to help their children gain confidence with money and finances. GoHenry was the first to respond to these needs in 2012 when we launched a groundbreaking financial education app and prepaid debit card that truly empowered children.”

“In 2020, we’ve achieved three key milestones: becoming profitable which many B2C fintechs seek, raising $40m during Covid, and partnering with world-leading funds. All three will help us fuel our US expansion.” 

GoHenry achieved profitability in March of this year, ahead of the full force of the Covid-19-related economic downturn.

Chris Sugden, managing partner at Edison Partners, added: “GoHenry is catering to millions of parents who are looking to raise smart, financially literate children but are currently underserved by existing solutions.”

The kid-focussed fintech first launched in the US in 2018, after six successful years here in the UK, and has amassed 1.2m customers on both sides of the Atlantic. 

Elina Berrebi, founding partner of Gaia Capital Partners, said: “GoHenry is a pioneer in the family finance space, fulfilling the critical mission of improving financial literacy of young people,” 

“We are very proud to partner with the management of this European gem and support their journey to become a global leader.”

GoHenry offers accounts to children aged between six and 18 years old, having recently launched a more teen-centric account aimed at 13 to 18-year-olds. 

In May 2020, the kid-friendly fintech launched a biodegradable card, made from 82 per cent renewable materials, for eco-conscious GoHenry users.