US-based Stash, the developer of a micro-investment mobile app, has acquired $112 million in capital through a Series F funding round that was led by LendingTree.
Several other companies took part in Stash’s latest round, including Breyer Capital, Goodwater Capital, Greenspring Associates, Union Square Ventures and assets advised by T Rowe Price Associates.
Stash’s recent round has been completed only a year after it secured $65 million in funding in March 2019.
Stash first began operations by offering a micro-investing app. The company plans to develop an “all-in-one financial home,” which will include banking, investing, consulting/advice, and technology-related services.
Stash reportedly has around 4.3 million users for its subscriptions, which may be purchased for as low as $1 (basic services) and up to $9 per month. The company has more than $1 billion in assets under management (AUM), which are supported by customer deposits of only $28 per transaction.
Stash’s clients can purchase fractional shares in many different stocks and funds. The company also allows users to access their paycheck up to two days early via its online banking portal.
Additionally, Stash offers various money management software tools and educational resources that aim to promote financial literacy.
Stash’s management noted that the capital raised will be used to support the firm’s growth and expansion efforts, and also promote brand awareness as it focuses on building up its middle-class customer base.
Brandon Krieg, CEO at Stash, stated:
“We are very fortunate to bring together [experienced] investors, to help accelerate Stash’s goal of bringing digital banking, investing plus financial education and advice to the millions of middle class Americans working hard every day to make ends meet.”
Krieg added:
“This massive group has attempted to make financial progress within a system that simply does not serve their best interests or meet their needs. It’s time for them to reconsider the current financial servicing industry as the ‘status-quo’ and take control of their financial life with the customer-obsessed solutions we provide at Stash.”