London-based fintech Plum has said it is “well-placed for profitability” off the back of a £16m Series B round split between institutional investors and crowdfunding.
Founded in 2016, Plum is a personal finance app featuring investment accounts, payment cards and automated saving and financial management tools.
The most recent accounts from the company, for the year ended 31 March 2022, show the firm lost £8.7m over the period, 60% more than the year prior. Plum’s 2023 accounts are four months overdue. A spokesperson for Plum told UKTN: “We fully recognise the importance of timely filing and the audited accounts will be filed imminently.”
Plum founder and CEO Victor Trokoudes, however, said the recent additions of a cash ISA product in the UK and ETFs in Europe were a major boost to the startup as it eyes profitability.
“The need for a smart app that helps people grow their money for life has never been stronger, and we’re already delivering this to millions of people,” said Plum
“But we don’t rest – we’re focused on what’s next and how to get even more people maximising their money with Plum.”
The fintech has secured £13.4m from anchor investor iGrow Venture Capital, alongside existing investors Venture Friends, Ventura Capital and Eurobank.
“Making savings solutions accessible to all, not just high-net-worth individuals, is a democratisation and revolution in the industry,” said iGrow Venture Capital founding partner Anastasios Economou.
Plum raised an additional £2.7m in a crowdfunding round via the investment platform Crowdcube. More than 5,500 people from the UK and EU participated in the round.
The company’s previous crowdfunding round saw it raise £1m in just eight hours.
Plum has also received investments from DMG Ventures, the investment arm of media giant Daily Mail and General Trust.