One, a new US challenger bank which is pitching for a summer launch, has reportedly secured $17m in its Series A round.
The capital injection was supplied by Foundation Capital, Core Innovation Capital and Obvious Ventures, according to a report from Crunchbase.
This new investment puts One’s total equity raised to $26m, having previously secured a $9m equity line from its chairman and co-founder Bill Harris, the article said.
Funds from the round will be used to support the development of the platform and get it ready for its summer public release.
Founded in 2019, the San Francisco-based challenger bank is focused on middle-income families across the US. This group includes traditional families as well as single partners, those supporting their parents, kids or other family members, those in shared housing, and more, it claims.
The bank has an app and a debit card, which enables users to better manage their finances. Through the app, a consumer access a FDIC insured account which supports automatic savings and 3% APY on balances.
Customers of One can also access more than 55,000 ATMs and get quick access to credit when needed.
There have been a number of US challenger banks to raise funds this year.
A filing with the US Securities and Exchange Commission stated digital bank Chime has collected $200m in funding. The digital bank previously raised $500m in funding at the end of 2019 as part of a Series E.
Fellow US neobank Empower recently bagged $20m in funding to improve its capabilities and better help millennials with their finances.
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