New York-Based Startup Raises $42 Million in Series B Funding
- January 16, 2018
- Posted by: Mike Brown
- Category: Personal Loan News
MoneyLion, which is based in Manhattan (above), just raised $42 million in Series B funding.
MoneyLion, an app that helps consumers manage their savings, wealth management, and borrowing, just raised $42 million in a Series B funding round. The company was founded in 2013 and has since raised a total of $67 million. The startup is based in Manhattan with offices in San Francisco, Malaysia, and Kuala Lumpur.
MoneyLion is an all-inclusive financial management app aimed at helping middle-class borrowers. By connecting their credit cards and bank accounts, the app is able to track users’ spending, suggest loans, and even simulate their future credit score.
MoneyLion touts its app as being the only financial service consumers really need since it streamlines multiple financial offerings into just one app. According to CEO Diwakar Choubey, the company is focused on “…re-bundling consumer financial services on a single digital platform to reduce friction and costs for our users.” Choubey added that this is made possible by “advancements in technologies like AI and machine learning.”
Both new and existing investors participated in this round of funding led by Edison Partners; Danhua Capital and Greenspring Associates were the newest members to invest in MoneyLion.
Edison Partners has already given MoneyLion a total of $27 million. According to Managing Partner Chris Sugden, this investment occurred because MoneyLion targets middle-class consumers. This is a group Sugden believes has been largely ignored by many financial companies. “Many traditional financial institutions and fintech platforms cater to super-prime, mass affluent consumers… In fact, more than 75 percent of America’s consumers remain underserved by financial services provides.”
For instance, the company offers a rewards program to customers who do things like signing up for free credit monitoring, paying bills on time, and tracking their savings. MoneyLion gives their customers points which can be redeemed for things like gift cards.
MoneyLion’s newest product is MoneyLion Plus, a subscription-based service that gives users automatic savings plans as well as access to a low-interest loan. It costs $29 per month, but users earn $1 for each day they log in, rendering the service “free” to users who log in on a daily basis. The company launched the service just this past November.
The company surpassed 1.5 million users and is cash-flow positive according to Business Insider, having reached 178% compounded growth in revenue. Most of their revenue is generated through loan products; they have provided more than 250,000 loans to date. They also earn money by recommending other financial services to customers who could benefit from them.
Image Copyright © Josh Liba