Chip, an automated savings platform, has closed a new £2.5m crowdfunding campaign on Crowdcube, surpassing its initial £1m target within hours.
This is the largest equity crowdfund to be closed in the UK since the lockdown began, Crowdcube claims. The company received contributions from 4,240 people.
Chip plans to use these funds to accelerate its growth and support the launch of its FSCS protected savings account through a partner bank. It will also use the capital to build new features to meet changing behaviours of savers during the pandemic.
Last month, the FinTech received the authorisation from the UK’s Financial Conduct Authority (FCA) to operate as a payment institution. This is enabling it to release its FSCS interest-bearing accounts.
The FinTech has seen strong growth in 2020, having increased its user base by more than 40% in the first three months and the average amount going to savings each month has increased by 13%.
A “safety net fund” has become the most popular goal set by users, knocking “holiday” off its top spot. Furthermore people are using funds originally set up for holidays, festivals and weddings to support small businesses, buy home schooling supplies, laptops for kids and DIY efforts.
Chip CEO and founder Simon Rabin said, “We’ve seen unprecedented growth during these difficult times, which demonstrates that Chip is incredibly useful for putting money aside for safety net and emergency funds. Off the back of this growth, we wanted to share the opportunity with our investor community, and have been overwhelmed by their response.
“Following on from the FCA authorisation, our next big milestone will be the launch of an FSCS protected savings account, giving our users an even more efficient tool to save up for their goals – whatever they might be.”
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