Greenlight Financial Technology, the startup behind an app and debit card for kids, has hit a $2.3 billion valuation thanks to a $260 million Series D funding round led by Andreessen Horowitz.TTV Capital, Canapi Ventures, Wells Fargo Strategic Capital, BOND, Fin VC, Goodwater Capital, Wellington Management, Owl Ventures and LionTree Partners joined the round, which sees Greenlight’s valuation nearly double in just six months.
Atlanta-based Greenlight combines a “smart” debit card with an app to help kids improve their financial literacy while giving parents controls on spending. Parents can pay allowances, manage chores and set flexible, store-level spend controls, while kids explore lessons in earning, saving, spending and giving.
Launched in 2017, the company now serves three million parents and kids, helping them collectively save more than $120 million. The firm has more than tripled YoY revenue, more than doubled the number of parents and kids on its platform, and doubled the size of its team within the past year.
The new funding will be used to accelerate product development to add more financial services to Greenlight’s platform and to invest in strategic distribution partnerships and geographic expansion. There are also plans to add 300 new employees with a focus on engineering over the next two years.
Tim Sheehan, CEO, Greenlight, adds: “Today’s financing will enable us to bring even more value to families as we continue to introduce new innovative products that shine a light on the world of money.”
The round is the second major fintech investment of the day for Andreessen Horowitz general partner David George, who also led a $220 million round for Current. George has joined the board of both firms.
“Greenlight was built to help parents raise financially-smart kids, and with its breakthrough combination of easy-to-use money management tools and educational resources, the company is well-positioned to become one of the most loved and trusted brands for families around the world,” he says.
Source: Finextra
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