Fintech startup raises £2m seed round to “promote financial literacy for Gen-Z”

Prograd, the fintech startup dedicated to helping young people understand finance, has announced its $2.5m (approx. £2m) seed round today.

The company, founded by two recent university graduates in London, is a platform allowing users to set up financial goals and find personalised paths to either earn, save or borrow their way to their goals, to “promote financial literacy for Gen-Zers”.

Prograd’s seed round included investment from Deloitte Ventures alongside Techstars, ZAKA Ventures, AGAM, Mandeep Singh founder of marketplace Trouva, and new and existing angel investors - both operators and leading figures from the financial services industry.

This investment will be used to expand the team’s marketing and development capabilities, improve its digital footprint, release an app and improve its algorithms products.

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.

The company was conceived after its co-founders Ethan Fraenkel and Marco Logiudice were struggling to find sustainable financing options to cover the cost of their master’s degrees.

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.

Since launching in August 2022, Prograd’s has helped over 15k users improve their financial situation by explaining and connecting them with earning, saving and credit opportunities from the likes of Santander, Revolut, Starling, Fiverr, IndeedFlex.

Ethan Fraenkel, CEO and co-founder of Prograd, says: “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.”

By Matthew Neville – Senior Correspondent, Bdaily

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