MoneyLion’s latest investment round, led by Edison Partners and Greenspring Associates, will go towards accelerating growth in the US.
US mobile bank MoneyLion has completed a $100m Series C funding round, which reportedly has the start-up inching towards a valuation of $1bn.
The fintech start-up was founded in 2013 and has offices located in New York City, San Francisco, Salt Lake City and Kuala Lumpur.
MoneyLion provides customers with a current account, an investment account, access to personal loans, cashback rewards and an AI-powered analytical tool called Financial Heartbeat, which allows users to monitor their spending and saving.
Users with a MoneyLion Plus membership are able to withdraw loans of up to $500 at 5.99pc APR, and get a free weekly credit score update. The start-up also offers cash advances to users before payday.
Founder and CEO of MoneyLion, Dee Choubey, said that 70pc of the app’s users last year saw their credit score increase by 30 points, and the company handed out more than $12m in cashback rewards to its users.
The bank aggregation app reportedly has 5m users at present, and allows them to view all of their financial accounts within the MoneyLion app.
The investment raised in this Series C round will go towards accelerating growth in the US. The round was led by Edison Partners and Greenspring Associates, and also saw investment from MetaBank, FinTech Collective and Capital One.
According to TechCrunch, MoneyLion raised $60m in venture capital and debt in the second quarter of 2018. Combined with the most recent round of funding, the company has raised more than $200m to date. A source familiar with MoneyLion’s financial situation told TechCrunch that the start-up is nearing unicorn status.
MoneyLion’s primary source of revenue comes from its $19.99-per-month subscription service. Speaking to TechCrunch, Choubey said that MoneyLion approaches financial services the same way that Netflix approaches video content.