Cleo scoops $44m, asks users to 'slide into its DMs' with spending suggestions

By Aisling Finn on Friday 11 December 2020

Savings and Investment

The fresh capital was raised from both new and existing investors.

Cleo scoops $44m, asks users to 'slide into its DMs' with spending suggestions
Image source: Cleo

 

Gen Z-focussed money management app Cleo has closed a $44m Series B funding round, according to TechCrunch.

The round, which was closed earlier on this year, was led by EQT Ventures and saw participation from existing investors Balderton Capital, Local Globe and State Bank of India.

As well as a whole host of big institutional investors, Cleo also counts TransferWise founder Taavet Hinrikus as an investor, after he saw the fintech’s potential back in 2018.

Cleo, which was founded in London, has 4m registered users, 96 per cent of which are based in the US.

Barney Hussey-Yeo, CEO of Cleo, told TechCrunch: “When we launched in the US it became quickly apparent that it would be our dominant market.”

“We were signing up about 1,000 users per day in the UK at the time. After [just] a week, we were at 10,000 per day in the U.S. and kept growing”.

Cleo offers personalised insight via spending data and Facebook Messenger with 94 per cent of users being aged under-35. 

Designed to help young people save, Cleo sets targets, tracks your spending, puts away savings automatically.

In a blog posted to its website, the Ai-powered fintech asked its 4m users “to slide into our DMs,” to find out what they want it to do with the fresh capital. 

“What do you do with this much cash? Get a massive Patagonia vest? Meh. There’s only like two tech bros that work here. We also love those tech bros for who they are on the inside,” the post read.

“What we want for us is to be the financial adviser that talks to you like a real person and isn’t boring as hell to use. What we want for you is to feel better about money AND be able to make strong money decisions from day one. That’s it.”

Over the past 12 months, Cleo has seen its revenues jump by 400 per cent as more people look to put aside funds for a rainy day.

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