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GoHenry, the fintech for under-18s, raises $55M after passing 2M users

 1 year ago
source link: https://finance.yahoo.com/news/gohenry-fintech-under-18s-raises-231756115.html
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GoHenry, the fintech for under-18s, raises $55M after passing 2M users

Ingrid Lunden
Thu, October 13, 2022, 8:17 AM·5 min read
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Neobanks have made a name for themselves by successfully winning the business of newly minted adults, opening their first checking, savings and investment accounts and uninterested in doing business with clunky, expensive legacy banks. Now a new wave of startups and services has been getting a jump on that model with an even earlier target: under-18s, including kids as young as 6, and in the latest development, U.K. fintech GoHenry is announcing $55 million in funding to double down on the opportunity.

The equity funding is coming from previous backers Edison Partners and Revaia (formerly Gaia), with a strategic investment from Italian payments company Nexi, a new backer.

The company is not disclosing its valuation but I understand it's more than $250 million and less than $500 million. It brings the total raised by GoHenry (named, the company says, after its first child-customer) to $125 million, including a $40 million round led by Edison in 2020 and a $15 million angel round. (Including recent acquisition Pixpay's fundraise, it's raised $136 million.) Early on, GoHenry also raised $15 million in crowdfunding in 2016 and 2018 and it likes to say that it has 5,000 shareholders as a result of those campaigns, with half of them also users.

That is just a small percentage overall of the kids (and parents) that GoHenry has amassed over the years. It now has 2 million customers -- all between 6 and 18 years of age -- across the U.K., the U.S., and more recently France and Spain after acquiring French rival Pixpay this summer. Today, they use two main services from the company, a prepaid debit card (topped up by parents typically) and a "financial education" app that links to that card (and an app that parents can use to help monitor and manage the account).

COVID-19 broke open the bank when it came to the usage of fintech: consumer "digital transformation" played out in a couple of ways, with people socially distancing driven to using apps and sites to manage their finances, underscored by a shift in commerce also going online, with that increased usage also leading them to trying new financial services alongside that.


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