Digital banking app completes £6.2m crowdfunding raise
FinTech company Gohenry has raised £6.2 million through a crowdfunding campaign on Crowdcube after exceeding its initial £2 million target.
The company, which is behind a financial tool that teaches kids and teens about money in an increasingly cashless world, will use the funds to expand its US operations and invest in both products and marketing.
Gohenry launched its Crowdcube campaign in September with a target of £2 million, but ultimately exceeded that goal by 3x after attracting cash from over 3,000 investors.
CEO Alex Zivoder said he was “blown away” by the level of support.
“The funds will help us to expand in the US, and further develop our product experience,” he added.
“Over 350,000 children are actively using gohenry, with more joining every day – managing their finances, learning about money, and getting to grips with the digital economy – these are very exciting times at gohenry!”
Luke Lang, co-founder of Crowdcube, added: “This is the third time gohenry has raised on Crowdcube’s platform as the company continues its impressive growth.
“Like Monzo and Revolut, gohenry is another brilliant example of a fintech trailblazer that understands the multiple benefits of crowdfunding.”
Gohenry is a pocket money management tool that uses a pre-paid card and app to help teach today’s digital generation about money. Parents can set up an account and use the app to set allowances automatically or related to tasks, as well as agree limits and locations where the card can be used.
After that, children (ages 6-18) are able to choose how they spend and save themselves, and the app gives them a record of where their money is going.
The start-up claims to have over 500,000 active members, made up of over 245,000 parents and 350,000 kids accounts. In the US, it already has over 15,000 active children accounts.
The successful raise comes after strong growth in the business, with revenues growing from £2.8 million in 2016 to £6.1 million in 2017, with 2018 figures expected to be £8.1 million.