London-based FinTech Prograd has raised £2m ($2.5m) in seed investment to accelerate its mission to help young people understand finance.
The startup was founded by university graduates Ethan Fraenkel and Marco Logiudice to promote financial literacy for Generation Z.
High profile angel investor Mandeep Singh, founder of marketplace Trouva, joined Deloitte Ventures, Techstars, ZAKA Ventures and AGAM in the seed investment raise.
It will be used to expand the team’s marketing and development capabilities, improve its digital footprint, release an app and improve its algorithms products.
CEO Ethan Fraenkel (pictured) said: “We are thrilled to have world class investors support us in our journey to educate the Gen-Z and help them achieve their financial goals – without financial jargon and in the most cost-effective way.
“We believe that one of the biggest problems in consumer finance right now is the lack of personalisation and financial literacy.
“There is a big disconnect between banks, what customers want to do and how the two parties communicate.
“This funding is an important milestone at a time where financial support has never been as critical for young people with the current cost of living crisis and gloomy financial outcome. We want to help this generation find the best solutions for their needs.”
Prograd officially commenced operations in September 2021, joining the Techstars London accelerator where it was guided with one-to-one mentorship from multiple former startup founders, assigned dedicated growth coaches and had access to capital to grow and scale.
Fraenkel and Logiudice came up with the idea for the business when they were struggling to find sustainable financing options to cover the cost of their master’s degree.
They realised how little they understood about money matters and the options available. Eventually, they ended up taking personal loans at high interest rates which are forcing them to repay double the amount they borrowed.
Prograd has already helped over 15,000 users improve their financial situation by explaining and connecting them with earning, saving and credit opportunities from the likes of Santander, Revolut, Starling, Fiverr and IndeedFlex.
Louise Brett, vice chairman of Deloitte UK and head of UK FinTech, said: “The knowledge gap around financial literacy, especially for younger generations, is a global problem that has deep societal implications. Prograd’s approach to this challenge offers meaningful benefits to both consumers and financial services.
We are looking forward to supporting Prograd towards making the world a more financially inclusive place.”
Prograd uses proprietary models to match users with solutions from different providers that could help them achieve their targets, including side-hustles, flexible work, savings accounts, credit cards, car finance and more.