Savings app Chip has raised £7.3 million to fund its expansion, with £3.8 million crowdfunded by customers, and the remainder from angel investors. The company has also brought in several industry veterans to help drive its growth.
Last year, Chip broke UK crowdfunding records, raising around £4 million by the time it closed. This year, the startup welcomed many more investors, bringing the total number to over 10,000.
The company opted to initially offer £1 million to existing investors, and after funding exceeded £1 million in just 54 minutes, opened up the remaining allocation to their customers. The 2019 crowdfunding campaign ran for three weeks in September and is currently Crowdcube’s most participated-in crowdfund ever, with 7,182 investors.
The capital will go towards scaling and improving Chip's capacity to handle large volumes of customers, by both expanding the team and refining infrastructure. It also plans on using the funds to launch better savings rates, offer access to Financial Services Compensation Scheme-protected accounts, and deliver an in-app marketplace for returns products.
The investment comes after a Chip broke through 150,000 customer accounts and brought in former Purplebricks chief technology officer David Kavanagh, former Deposit Solutions chief operating officer Sharon Miles, former Funding Circle compliance lead Gerard Hurley, and Monzo co-founder Gary Dolman.
Chief executive Simon Rabin commented: “We’ve proven there’s a big demand for Chip, and we’re ready to scale – we’re going to use our investment to grow and deliver a product that will fill a huge gap in the market.”
New chief technology officer Kavanagh added: “The savings market is archaic, broken and ineffective – people want more from their savings accounts, so they are voting with their capital.
“Chip has raised VC-levels of funding from its users and supporters, demonstrating that what customers want is a market-changing product that is easy to use, helps them save, and offers the best possible rates in the market.”
Latest News
-
UK regulators launch inquiry into Big Tech digital wallets
-
Citi taps Barclays for new commercial head
-
Santander launches digital sign language service
-
Anne Boden steps down from Starling board to 'develop AI business'
-
NatWest payments arm partners with JD Wetherspoon
-
Government stake in NatWest drops below 20 per cent
Safeguarding economies: DNFBPs' role in AML and CTF compliance explained
Join FStech editor Jonathan Easton, NICE Actimize's Adam McLaughlin and Graham Mackenzie of the Law Society of Scotland as they look at the role Designated Non-Financial Businesses and Professions (DNFBPs) play in the financial sector, and the challenges they face in complying with anti-money laundering and counter-terrorist financing regulations.
Ransomware and beyond: Enhancing cyber threat awareness in the financial sector
Join FStech editor Jonathan Easton and Proofpoint cybersecurity strategist Matt Cooke as they discuss the findings of the State of the Phish 2023 report, diving into key topics such as awareness of cyber threats, the sophisticated techniques being used by criminals to target the financial sector, and how financial institutions can take a proactive approach to educating both their employees and their customers.
Click here to read the 2023 State of the Phish report from Proofpoint.
Click here to read the 2023 State of the Phish report from Proofpoint.
Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.
Future of Planning, Budgeting, Forecasting, and Reporting
Sage Intacct is excited to present FSN The Modern Finance Forum’s “Future of Planning, Budgeting, Forecasting, and Reporting Global Survey 2022” results. With participation from 450 companies around the globe, the survey results highlight how organisations are developing their core financial processes by 2030.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories