As Generation-Z is growing in buying power, the financial industry is being reinvented. They rely on technology to budget, invest their money, and banking as well. Based out of London, Cleo is one such app designed for Gen-Z to assist in terms of finance.
Raised £33.2 million funding
Recently, the company raised $44 million (approx £33.2 million) in Series B funding led by EQT Ventures with participation from existing investors Balderton Capital, LocalGlobe, and SBI. With this funding, they join the existing roster of angel investors including Taavet Hinrikus, Matt Robinson, Errol Damelin, Niklas Zennstrom, Alex Chesterman, and Ian Hogarth.
“We’re building Cleo to become the financial advisor that a billion people need. One that talks to you like a real person, able to build trust and relationships like a bank never could,” said Cleo CEO, Barney Hussey-Yeo. “The work we do at Cleo has never been more urgent. This crisis has been devastating to the generation we serve. They’re facing true financial hardship with no one to turn to. I’m delighted that EQT Ventures decided to join us on our mission to fight for the world’s financial health and looking forward to putting this capital to work.”
How will the funding be used?
The company is planning to use the funding to improve credit, build personalised spending plans to stabilise financial safety nets, and stop the paycheck to paycheck cycle. Cleo will further the US expansion as it continues to make leadership hires in the Bay Area.
Improves relationship with money
Founded by Barnaby Hussey-Yeo, Cleo is a digital assistant making money fun and approachable for a young generation. The company offers insights about a user’s financial life and the data needed to make strong financial decisions from day one.
Now trusted by four million Gen-Z and Millennial users, Cleo has reached increasingly strong unit economics and over 400% revenue growth in the last year.
“Barney and Cleo are truly disrupting consumer finance,” said Tom Mendoza, Deal Partner at EQT Ventures. “They’ve taken a radically different approach to money management and created an AI financial advisor with a personality that proactively delivers personalised insights that help customers spend less and save more. In the current climate, Cleo is now more relevant than ever. Getting answers to financial questions is particularly important for the younger generation, many of whom are trying to navigate the economic consequences of coronavirus — from graduates entering a dwindling job market to young professionals struggling to pay rent. As Cleo is a horizontal platform sitting on top of banks, the company will be able to scale globally faster than most of its competitors. The EQT Ventures team is excited to be joining Cleo’s team on the next stage of the company’s journey!”