New York-area startups and venture capitalists are making funding deals with the hopes of creating the next profitable company. Here's one deal announced Tuesday:
Who gets: MoneyLion, the digital personal finance platform geared toward the financial middle class, secured a new round of funding.
Amount raised: $42 million in series B funding. The company previously raised $22.5 million as part of a series A.
Who invests: Similar to the series A round, Edison Partners led the effort. Existing investors, New York-based firm FinTech Collective and Grupo SURA, also participated in the round. Greenspring Associates and Danhua Capital are among MoneyLion's new investors.
What the CEO says: “We set out in 2013 with the mission to empower all Americans to take control of their financial lives with uniquely personalized financial products," said Diwakar Choubey, CEO and co-founder of MoneyLion in a prepared statement. "We’re bringing private banking-like services to the middle class that address their toughest financial challenges, like fluctuating monthly income and expenses, access to affordable credit, and improving savings."
Company details: MoneyLion touted that it surpassed 1.5 million users and has experienced 178 percent compounded growth in revenue since 2015. The Manhattan-based company, which also has offices in San Francisco and Kuala Lumpur, Malaysia, is cash flow positive.
This latest round of funding is expected to be used as growth capital to bolster technology and expand MoneyLion's product line.
MoneyLion’s mobile app uses machine learning to simulate their future credit score, recommend loans, manage current finances and track spending. The company also recently launched MoneyLion Plus, a subscription service that provides access to lower APR loans and an automated savings tool. According to TechCrunch, the service costs $29 per month users are refunded $1 for each day they log in, meaning the service is essentially free if users log in every day.
View article on New York Business Journal.