Investing app Moneybox secures £14m to expand operations
Moneybox, the micro-investing app, has secured £14m in Series B funding, in a round led by venture capital firm Eight Roads.
Existing investors including Oxford Capital Partners and Samos Investments also participated.
This new round of funding, which brings the total amount raised by the company to £21.3m, will be used to build out Moneybox’s team and deliver a best-in-class customer experience, including new products and content.
The app said its purpose is to offer people “a simple way to take the first step on their investing journey, and then continue to build their financial future through easy-to-use tools and support.”
Launched in August 2015 by entrepreneurs Charlie Mortimer and Ben Stanway, Moneybox has already helped over 100,000 people start their investing journey.
Ben Stanway, co-founder of Moneybox, said: “The traditional wealth management industry is geared to those who already have wealth – a concept that is alien to many young people. It creates huge barriers – including impenetrable jargon – for those who want to start saving and investing.
“We are determined to break that mould and make investing clear, simple and easy to achieve. We are delighted that this new funding round will help us to further develop our service and empower many more customers to achieve their financial goals.”
Cyrus Jilla, president of Eight Roads, added: “Moneybox demystifies savings and investments with a simple, engaging and intuitive product that fits seamlessly into the everyday lives of its users.
“Eight Roads’ looks forward to using its global network and financial services expertise to support Moneybox over the long-term, as it continues to grow its loyal customer base, expand its proposition and build out its team.”
The Moneybox app works by allowing customers to sign up in a few minutes and get started with as little as £1. The round ups feature makes investing part of everyday life by helping customers set aside the spare change from their purchases.
The average Moneybox customer invests £20 a week through a combination of round ups, weekly deposits, payday boosts and one-offs.
Customers can choose from three starting options – cautious, balanced and adventurous – which invest in tracker funds run by Vanguard, Henderson and BlackRock.
FT Partners served as the exclusive strategic and financial advisor to Moneybox on its Series B fund.
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