Pocket money app GoHenry secures $40m in funding round
Children’s bank account app GoHenry has raised $40m as it looks to fund its expansion in the UK and the US.
The UK fintech firm, which was founded eight years ago, provides children as young as six with a pre-paid debit card and app that can be controlled and topped up by parents.
The funding round was led by Edison Partners with investment from Gaia Capital Partners, Citi Ventures and Muse Capital. GoHenry did not disclose its valuation with this round, which is its first institutional fundraise. It has previously raised around $30m from friends and family as well as equity crowdfunding.
“In 2020, we’ve achieved three key milestones: becoming profitable which many B2C fintechs seek, raising $40m during Covid, and partnering with world leading funds. All three will help us fuel our US expansion.” chief executive Alex Zivoder said.
“For too long, kids have been locked out of the digital economy and parents lacked the tools to help their children gain confidence with money and finances.”
The company has doubled its customer base over the past six years and is now used by more than 1.2m parents and children. It has also notably been profitable since March 2020.
The fresh financing will be used to accelerated the firm’s expansion across the US, where it launched in 2018, and solidify its growth in the UK.
GoHenry said that UK parents paid in £98m in pocket money last year, while its users spent just under £100m.
There has been renewed interest in banking apps for those under 18, including teen banking app Step which raised $50m earlier this month. Digital bank Revolut also recently launched Revolut Junior, a product specifically targeted towards children aged between seven and 17.