Investing can be a confusing and daunting process for many—especially if you’re just starting out and don’t have a ton of extra funds at your disposal. U.K.-based Moneybox was founded in 2015 to make it easier for millennials to save and invest their hard-earned money.
Moneybox’s app rounds off a credit card transaction’s value and saves the change in a tax-free savings account. Those funds can then be used to open a stocks and shares ISA (Individual Savings Account).
Before its 2016 launch, Moneybox raised $3 million in a seed funding round led by Samos Investments and other angel investors. Since then, the company has added a range of saving and investment products and closed a £14 million Series B funding round led by Eight Road in 2018.
“The traditional wealth management industry is geared to those who already have wealth – a concept that is alien to many young people,” explained Ben Stanway, co-founder of Moneybox. “It creates huge barriers – including impenetrable jargon – for those who want to start saving and investing. We are determined to break that mold and make investing clear, simple and easy to achieve.”
The company now boasts £1 billion in assets and more than 450,000 customers—and has experienced 121 percent year-over-year customer growth. It also forged partnerships with Starling Bank, Monzo, and Santander to provide each financial institution’s customers with access to Moneybox’s suite of savings and investing tools. The alliance is Santander’s first open banking partnership.
In order to keep growing, Moneybox just announced that it has raised £30 million in a Series C funding round led by Eight Roads and CNP, and joined by Breega. The new funding will be used to expand its product offerings, invest in new technology, and scale its team, which is currently at 120 employees. The company has raised over £50 million to date.
In addition, Moneybox recently revealed a crowdfunding campaign on Crowdcube that will enable its customers the chance to invest in the firm. Potential investors can now preregister before the crowdfund goes live. There was no additional information on when that will be, and how much the company is hoping to raise as a result.