Challenger bank Current has secured $131m in a Series C funding round led by Tiger Global Management to work towards making the financial lives easier for its users.
New investors Sapphire Ventures and Avenir joined returning backers Foundation Capital, Wellington Management Company and QED Investors for the raise, which brought the total injected into the business to over $180m. The neobank now has a valuation of $750m.
?We have seen a demonstrated need for access to affordable banking with a best-in-class mobile solution that Current is uniquely suited to provide,said Stuart Sopp, CEO and founder of Current.
?We are committed to building products specifically to improve the financial outcomes of the millions of hard-working Americans who live paycheque to paycheque, and whose needs are not being properly served by traditional banks.
“With this new round of funding we will continue to expand on our mission, growth and innovation to find more ways to get members their money faster, help them spend it smarter and help close the financial inequality gap.p>
The new raise comes little over a year since Current cashed in on a $20m Series B round in October 2019. Since then, startup has enjoyed a massive growth spurt, having doubled its member base in less than six months to surpass two million members. It also reported that its revenue has increased over 500% percent year over year.
?Current meteoric growth shows the huge demand for digital banking built to serve the needs of the people, instead of the other way around. Old banks over-charge and under-serve,” said?said Angus Davis, partner at Foundation Capital.
“Current turns that broken model on its head to help the next generation of Americans get ahead with a digital app that puts the superpowers of a reimagined bank in your pocket.p>
With the additional funding, Current plans to expand on its product offerings in order to continue to meet the financial needs of its core demographic and improve even more financial lives.
?Were proud of our ability to deliver on our promises to our members, especially at times many needed it most this year,Sopp said. ?Our growth this year highlights the need of so many Americans for faster access to money, the trust weve built with them and we look forward to accelerating into 2021.p>
However, Current is facing a lot of competition in market that is currently dominated by Chime, the challenger bank that reported that it had achieved a $14.5bn valuation in September this year.
Other US-based competitors include Empower, NorthOne and One secure funding this year.
Current is also competing against a smattering of European neobanks such as Revolut, Monzo and N26 that have all launched into the US market in recent years.
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