Cleo, an AI-powered assistant which seeks to help consumers manage their finances, has closed a £2m round led by Robin Klein at LocalGlobe.
Existing angels including Niklas Zennström, founder of Skype; and Jason Goodman, the founder of advertising agency Albion; also participated and will become non-executive directors of the business.
The company says it is now managing more than £400m worth of assets, spread across tens of thousands of customers.
Users can ‘securely’ connect their bank and credit card accounts and share financial insights via Facebook Messenger to view their spending grouped into transactions, categories and merchants; save money; and send funds to friends using Messenger without the need to input sort codes or log into their bank.
Additionally, Cleo says it also allows consumers to find better deals on bills, subscriptions and financial products.
Speaking about the fundraise, Barney Hussey-Yeo, founder and CEO Cleo, said: “Legacy banking software is unable to cater to the needs of a generation that is used to instant responses and real time interaction.
Kindred app raises £2m in seed capital
“We designed Cleo to make it easy for anyone to understand where their money is going, to easily save, or to send money to friends instantly through a familiar interface.”
Klein, a general partner at LocalGlobe, said the team had been impressed with Cleo’s application of AI and its ability to engage a community of digital natives.
“In a short time, the Cleo team has already demonstrated product execution for growth and retention of its target demographic. People using the service really understand where their money is going and can find ways to save and replace with better financial products.”
The news comes after the firm closed a $700,000 Angel round in January. An alumnus of Entrepreneur First, Cleo was born when Hussey-Yeo partnered with co-founder and CTO Aleksandra Wozniak at the London-based startup accelerator.