The bank plans to begin mobile-only current accounts which will be upgraded as customer feedback comes in.
UK fintech startup Kroo has announced the completion of its series B funding. With £26 million raised in this round, the neobank has now raised over £56m in equity funding since its launch. Also, it plans to hold another funding round next year.
The just-completed funding round featured 60% of previous investors, with only a few more coming on board. CEO of Kroo, Andrea De Gottardo, expressed delight at the support the firm enjoyed from past investors. “We are very excited to offer to the UK customers a new digital bank that will have a positive impact on their lives,” he noted.
Kroo launched in February 2019 and has steadily continued its journey toward becoming a traditional bank without an institutional investor. The company wants to connect people financially, improve their financial situations, and impact the world. Recently, it obtained its banking license from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), howbeit with restrictions. This translates to an entry into the final stage of the UK’s arduous licensing process by UK financial watchdogs.
Currently, the firm offers prepaid debit card services and has grown its user base to 23,000 organically. Also, the card comes with an app to track personal and social finances and on average, 120,000 transactions occur on the platform monthly.
Series B Funding: How Kroo Will Use the Funds
With the funding round complete, Kroo will aim to deploy the funds as transparently as possible. Already, the firm is looking to advance its offerings. Gottardo stated that funds from the just-completed round will support the launch and marketing of its current account. The bank plans to begin mobile-only current accounts which will be upgraded as customer feedback comes in.
Aside from this, the funds will be used to scale up services and operations, recruit new staff, and develop a lending proposition. The socially-conscious bank has previously promised that it will give out part of its profit for social causes. Earlier in June 2021, it launched a tree-planting scheme that requires it to plant twenty trees every time a customer refers a friend.
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