- GoHenry provides an online debit card to kids between the age group of 6 to 18
- It helps kids gain confidence in managing money and understanding finances
- Edison Partners led the round, including Gaia Capital Partners, Citi Ventures, etc
Financial companies around the world are going digital. Apart from transferring their offline customers to an online service, these fintech companies are vying to acquire a new and younger user base. Companies are always working on finding a more responsible way to connect to these potential customers. GoHenry is one such fintech company. It recently raised a $40 million funding to promote its service for those under 18 years of age.
The company aims to continue building out its business in the US and UK with the amount raised in this round. The funding was led by Edison Partners, Gaia Capital Partners, Citi Ventures, and Muse Capital. The startup has not disclosed its valuation post-funding. GoHenry has been very successful in its prior fundraising and was able to raise about $30 million from co-founders and crowdfunding. It broke the record in equity crowdfunding in 2016 when it raised $5.6 million on Crowdcube.
GoHenry is an online debit card designed to help children from ages 6 to 18 manage their allowances. The online app offers intuitive budgeting and inculcates responsible spending among youngsters. Currently, it is being led by CEO Alex Zivonder. It has doubled its customer base annually for the past six years and now has over 1.2 million members.
Usually, younger people receive a fixed amount as pocket money from their parents or save money from any informal work they do. But, these days almost everyone has a smartphone, and it is possible to extend online banking services through a wider variety of apps. GoHenry picked up the idea of serving as an entry point for financial education and getting young people responsible with money and its worth.
In the short span of eight years, since 2012, GoHenry became profitable, which is still sought after by many fintech companies. Another remarkable achievement is raising $40 million during COVID struggles. The startup is now focused on helping kids and teens gain confidence in managing money and understanding finances. The service also offers more controls for parents compared to other cards. Parents can limit the accessibility of the card. Also, the platform shows reports on how the money on the card is being used. GoHenry’s attempt to build a strong relationship and boost the financial fitness of kids is a noteworthy effort.