Andrea De Gottardo/Kroo
Kroo’s raises £2m from crowdfunding campagin
Less than a year after launching, Kroo has added nearly 3000 private investors to its cap table.
UK neobank Kroo has raised just over £2m in a crowdfunding round on Crowdcube, backed by nearly 2702 investors.
Shares in the crowdfunding round were offered at the same price as in the current B+ round, which has so far raised £30m, £14.5m from private investors.
Kroo, which launched one year ago doubled its initial £1m target with investors on average backing the round with £740. Early access was given to customers.
“Kroo launched its first crowdfunding round to build a movement to change banking for good and take on the high street giants. Kroo is building a bank that puts its customers first, giving them the power and agency to influence the business and its products,” Andrea De Gottardo, CEO of Kroo, said.
“Owning part of the fast-growing bank also means investors could profit from our success in the future. The low threshold for investment of £10 was to ensure everyone had a fair ability to invest,” he added.
Founded in 2016, Kroo landed a full UK banking licence in 2022 and launched with a strategy centred on competitive a savings rate, part of a wider goal to be highly competitive with high street incumbent banks, which it says operates on a ‘profit-extraction model’.
Less than a year since its current account launch, Kroo has now opened 145K current accounts, amassed £800m in deposits and aims to deliver profits faster than any other UK bank with a current account.
“Banking practices that prioritise profits over people have been unchallenged for too long. We believe we can build a genuine alternative for customers who want better from their bank, and their money,” De Gottardo said.