British fintech Plum has raised $14m (£10m), part of an anticipated $24m Series A funding, to speed up the company’s expansion, and consolidate its position as Europe’s top money management app.
When Series A closes, Plum expects total funding to date to have topped $43m and its valuation to have tripled since the company’s last funding round in July 2020.
The fintech has big plans for Europe. Its European bases are currently in in Athens and Nicosia and it is expecting to get regulatory approval to offer investments in the EU.
Plum is already covering 26.6% of the EU population, and plans to cover 70.6% by the end of 2022 with launches in the Netherlands, Portugal, Belgium, Italy, Finland, Austria and Germany.
“The appetite for smart and intuitive investment products is enormous, particularly in parts of Europe where often old-fashioned banks are the only option for growing your money,” said Victor Trokoudes, CEO & co-founder.
“With the help of this new investment and our upcoming crowdfund, our app will become the natural choice for anyone in Europe looking to improve their finances for the long-term.”
Plum believes savers and investors across Europe are looking to fintechs to help them grow their wealth in the wake of the COVID-19 pandemic.
The latest round was led by a consortium of investors, including new partners dmg ventures and Ventura Capital. They are joined in this round by previous backers Global Brain, VentureFriends and 500 Startups.
The company is planning a new crowdfunding round opening on Crowdcube later in October – more than 20,000 people have already registered interest.
The company has seen customer numbers double in the past year, with more than one million people across Europe now saving and investing with Plum.
Revenue has been up 189% in the past year compared to the year prior, as more customers subscribe to Plum’s premium tiers.
Product development next year will be focused on getting people “investing smartly” with Plum.
The company is planning to do this by offering more assets, building on its forthcoming stocks launch with EU and UK stocks, as well as crypto as an asset class.
A Plum card is also on the horizon later this year to help customers automate their spending alongside their investments.
The company had earlier said the pandemic has been a boon for the business, with pent up lockdown savings adding fuel to the fire for many new, young investors.
"The first month or so everyone was trying to figure out what to do with their life, but it really accelerated the business," Trokoudes had said. The amount of savers on the platform tripled during COVID.
No word yet on an IPO but London has been attracting some major tech listings, including fintech Wise (WISE.L).
Its near-£8bn flotation broke records for the biggest ever tech listing on the London stock market, topping Deliveroo (ROO.L)
Watch: Should I pay off debt or save money during the coronavirus pandemic?