Acorns, a micro-investing app, has closed an undisclosed round of funding from TPG global investment fund.
This investment marks The Rise Fund first investment in to a FinTech company.
US-based Acorns is a mobile-based micro investing app which automatically invests in to a low-cost diverse portfolio of exchange-traded funds, which are offered by firms including BlackRock and Vanguard. A user connects their accounts and cards to the platform and when they next make a normal purchase, the app will round up the expense and, through smart algorithms, automatically invest.
Through the application, users can set up recurring investments, and can boost funds in the account. The company is hoping to increase financial inclusion by helping more people get involved with investing and providing financial literacy education through its teaching platform Grow.
Equity from the round will be used to accelerate Acorns product development, which includes expanding the Acorns Found Money program. This new initiative is a cash forward rewards program.
Acorns CEO Noah Kerner said, ?I believe in the American Dream; in the idea that no matter where you start, anyone can grow wealth. This investment and support from TPG Rise Fund, which has brought together some of the world most influential thought leaders committed to driving social change, will help us further deliver the tools, knowledge and inspiration to champion that idea.p>
Recently, Acorns acquired Portland-based investment app Vault, which automatically invests part of a user paycheck into a retirement fund. Through the acquisition, the company hopes to launch an individual retirement arrangement (IRA) designed solution.
Last week, fellow micro-investment platform Mylo Financial Technologies closed a $2m funding round from a group of investors which included Desjardins Capital. The capital was raised to support the development of its backend technology.
Late last year, TPG took part in the $161m funding round on India-based microfinance platform Janalakshmi Financial Services.
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