Andrea De Gottardo/Kroo
Kroo reveals in-progress £55-70m Series C funding round
Digital bank looks to drum up interest in its next raise, which should lead to profitability
After opening its accounts to customers less than a year ago and reaching nearly £750m in deposits, in an unusual move digital bank Kroo has pre-announced its Series C funding round.
In a statement yesterday Kroo said it “is looking to raise £55m - £70m to enhance and develop its product offer, grow its customer base and build its quality loan book.”
Furthermore, the bank said it hopes to reach profitability with the closure of this next round, potentially hinting to new investors that no further injections of capital will be required.
Since launch Kroo’s USPs have been fairness, paying high interest rates on its customers’ entire account deposits, and its environmental focus where two trees are planted for each new customer.
“Our growth in the last nine months shows there is an appetite for better banking, and this latest investment round will enable us to support more customers and increase the products and services we offer,” Kroo CEO Andrea De Gottardo said.
“We want to challenge the traditional banking model for the better, shifting the relationship with customers by building their trust.”
Kroo said for this funding round it is targeting VCs, family offices, institutional investors and private equity in the UK, US and Europe.
As well as revealing the in-progress Series C round, Kroo said that going forward it will pay its customers a new ‘tracker’ rate of interest, set 0.9 per cent lower than the Bank of England rate.
So far Kroo has consistently raised its rates in line with the bank rate, often trying to pre-empt upcoming rises, but this new change will simplify that proposition and give customers clarity on when and how their rate will change.