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Recent news show that a rival U.S. mobile bank called “MoneyLion” has raised $100 million in a new funding round, putting them near a “unicorn” valuation. This is meant to accelerate the company growth in the U.S. markets.
A new fintech startup MoneyLion has recently raised an additional $100 million for the company’s growth in the U.S. markets. The six-year-old company provides financial advice and access to loans to their customers. Judging by MoneyLion reports, Edison Partners and Greenspring Associates mostly led this Series C funding round, however, MetaBank and FinTech Collective also participated.
In previous funding rounds, MoneyLion has raised $60 million in venture capital and debt. Up to date, MoneyLion has raised over $200 million which puts its current round valuation at near $1 billion.
MoneyLion itself describes their business as a mobile bank, yet they also do loans, savings, and wealth management. Users can receive personalized advice on how to better spend their money. Customers just have to connect their bank accounts or credit cards to the app.
While the basic part of the app is free for customers, there also is a subscription plan for $19.99/month. With the paid plan, customers can receive bundles banking, core investment management, and access to financing.
While the CEO of MoneyLion, Dee Choubey didn’t disclose how many paid subscribers are there, he managed to mention that the app sees 5 million customers using the app. However, this number also includes free plan users.
The Netflix Of Finance?
MoneyLion says they want to keep their users “hooked” to the platform by adding multiple new features to their app.
“You will see us investing heavily in broker-dealer capabilities, training capabilities, and stock investing capabilities. We think of ourselves approaching financial services just like Netflix approaches to content. We want to keep users hooked to the platform,” commented Dee Choubey.
The managing partner at Edison Partners, Chris Sudgen, explained that MoneyLion focused on bringing all traditional bank features to its platform in the last year. These new opportunities are what dragged him into investing in the startup.
When asked about the company’s revenue, Dee Choubey declined to comment but said that the company currently is in “hyper-growth stage”.
Since the company launched, it has saved more than $7 million in banking fees for their customers. Also, the company managed to generate an astonishing $12 million cashback rewards, and increase 70% of its customer credit scores by 30 points.