Yotta Savings, a mobile app where saving money gives people the chance of winning $10m, has reportedly closed a funding round on $3.3m.
Investors of the round included Slow Ventures, FundersClub, TwentyTwo VC, Chapter One, CapitalX, Y Combinator and some angel investors, according to a report from Crunchbase. The investment brings the company’s total funding to $3.9m, it said.
Following the close of the round, the company will hire additional staff for its engineering and customer support teams. It will also begin paid advertising and the deployment of comprehensive banking offering such as debit and credit cards.
Yotta is a FDIC insured account which is only available in the US. For every $25 an account holder saves earns them a recurring ticket into weekly number draws. So if they deposit $50 they will earn two tickets every week without needing to deposit more money.
Every Monday, the user will need to pick seven numbers for each of their tickets, or let it automatically choose them. Yotta will pick one number each day of the week, with Sunday being the 7th and final number. Users can then win money based on how many numbers they match, with a maximum jackpot of $10m available.
Users can withdraw their money at any times , up to six-times a month.
Yotta co-founder Adam Moelis told Crunchbase News, “At first, when you talk to people about this, they think it sounds like a gambling concept, but you can’t lose money.
“It’s offered more like a sweepstakes, which is totally legal. When you save money in your bank account, it is linked to the sweepstakes and you have a chance to win prizes.â€
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