Online investing platform Acorns has raised $300m in Series F funding, propelling it to a $1.9bn valuation.
According to aÂ reportÂ by CNBC, TPG led the Series F round with additional investors including BlackRock, Bain Capital Ventures, Galaxy Digital, and a firm created by Brooklyn Nets player Kevin Durant.
The funding follows the companyâ€™s announcement last year that it would go public via a special purpose acquisition company (SPAC). It later cancelled the deal at the beginning of the year, citing â€œmarketing conditions.â€
Founded in 2012, Acorns is an automated investing service that lets customers invest spare change from card transactions into a managed portfolio of ETFs for a monthly fee of $3 to $5. The firm says it has 4.6 million customers.
The company said it will use its funding to further build out its family-specific offerings, products and content that increase portfolio personalisation and new crypto offerings.
Speaking of the cancelled SPAC, Noah Kerner, CEO of Acorns, said, â€œThe markets got very volatileâ€¦ The concerns we had about the [SPAC] market were that we would get lumped into a group of companies that perhaps were valuing themselves in inflated ways.â€
Of the new funding, he said, â€œWe believe that the convergence of product and education in money is the way to get people engaged in better behaviours. Itâ€™s difficult to get people to read about money in the first place, itâ€™s even more difficult to get people to retain the information. And we think active learning is the solution to that.â€
When the markets return to being more welcoming to fintech listings, Acorns will go public â€” but via a traditional IPO, Kerner added.
Copyright Â© 2022 FinTech Global