- Mobile bank company MoneyLion announced it raised $160 million in previously unannounced funding and $60 million Series C
MoneyLion — a mobile bank that is known for helping Americans save, invest, and grow — recently announced that it raised $160 million in funding including $60 million in previously unannounced financing and a $100 million Series C funding round. The valuation at this round is unknown, but Crunchbase’s sources said that the company is near “unicorn status.”
This round of funding was co-led by Edison Partners and Greenspring Associates. And it included strategic investment from Capital One. And the round also included investment from MetaBank and FinTech Collective. Upon the completion of the Series C round, the company would have raised $200 million in equity financing total.
“We created MoneyLion with a focused goal of providing people with the most valued banking experience in the world,” said MoneyLion CEO and founder Dee Choubey. “In 2018, we helped our members avoid over $7.2 million in traditional banking fees, generated over $12 million in cashback rewards and helped 70% of our members increase their credit scores by 30 points. The strategic investment from these leading financial institutions validates our mission and approach and demonstrates their acknowledgment of a dynamic shift in consumer banking. It also reinforces consumer demand for fintech solutions that provide Americans with unprecedented access to the most powerful financial products and services in a single, integrated platform. More than just a challenger bank, MoneyLion is a membership destination that’s given its more than five million members a chance to once and for all take control of their financial futures.”
The MoneyLion membership has helped millions of Americans achieve financial goals through exclusive access to some of the most disruptive and powerful financial products on the market. By aggregating banking, investing, rewards, loans, credit-building, and financial wellness products and services into a single point of access, MoneyLion has created a financial destination that helps members easily organize their financial lives and empowers them in making better financial decisions.
“We believe that MoneyLion, with its financial membership model and holistic approach to providing an all-in-one financial solution for millions of Americans, has created the most complete mobile banking destination in the market,” added Hunter Somerville — a general partner at Greenspring Associates. “We’re proud to back what we see as the digital banking platform of the future.”
MoneyLion plans to use the funding for rapidly accelerating customer growth within the U.S. and drive further adoption of its powerful bank membership — which includes fee-free checking, 55,000+ free ATMs and zero-fee managed investment accounts that offer diversified portfolios, low-cost ETFs, and hassle-free contributions. And this year, MoneyLion’s bank membership has grown at an annualized rate of >1,000% with respect to both accounts and daily average transactions.
Plus the company is also planning to expand its product offering by introducing a series of new and innovative financial tools, including 0% APR daily cash advances available to members any day of the week to help with short-term cash flow issues, a high-yield cash account, and a stock trading platform allowing members to invest in individual companies about which they are passionate about. These new tools will help broaden MoneyLion’s reach to those consumers looking for an all-in-one destination for all their financial activities and goals.
“MetaBank has carefully researched and partnered with some of the top consumer financial technology brands in the world, including the likes of PayPal and NetSpend,” explained Jeremy Kuiper — SVP and head of Meta Ventures. “When presented with the opportunity to invest in MoneyLion, we were overwhelmed by their unique approach to changing consumers’ relationships with their finances through membership, data and community engagement. We’re excited to continue our legacy of partnering with innovative companies that are powering the future of personal finance, like MoneyLion.”
