Cleo, the Gen Z financial wellbeing app, has grabbed $80 million in Series C funding. The financing round was by Belgium-based investment company Sofina (which recently invested in Birdie and CoachHub) supported by participation from existing investors, including EQT Ventures & Balderton Capital.
Targets to grow in the US
This investment comes at a time when the fintech company seeks to double-down on the US market and help Gen Z audiences improve their financial health and wellbeing. Also, Cleo will use the new funding to expand its headcount from 140 to over 220 and continue iterating and improving on its product suite.
Speaking about the raise, Barnaby Hussey-Yeo, Founder and CEO of Cleo, said: “We’re here to provide personalised financial support and guidance to these young people, giving them a helping hand as they seek to better manage their finances, build their credit profile and weather the storm caused by the cost-of-living crisis. Our latest raise enables us to double-down on our US presence and focus on delivering deeper engagement so that we can better support our customers through the difficult days ahead.”
Harold Boël, CEO at Sofina said: “Investing in Cleo illustrates our strategy of building a diversified portfolio of businesses leveraging technology to improve people’s lives. Cleo’s mission of bringing fintech-enabled personal financial empowerment to many people worldwide resonates with our own. We were impressed by the drive and the talent of the team and look forward to our partnership.”
Improves Gen Z’s financial health
Founded by Barnaby Hussey-Yeo in 2016 in London, Cleo supports and empowers young people to form better money habits.
Cleo can completely change the trajectory of their financial life. 84% of people feel better about their money after just one month of using the app, while average engagement levels are more than 250% higher than competitors.
The company has helped millions of users on their financial journey with over half converting to one of Cleo’s paying subscription tiers within the first 12 months of downloading the app. It is touted to be an unprecedented personal finance app aimed at young people.
What does Cleo do?
The company offers insights about a user’s financial life and the data needed to make strong financial decisions from day one.
Cleo is a digital assistant, which is partly a money app and partly AI. With a simple chat, it can automate users’ money life and remove the stress of decision making with deeply personal advice based on their specific needs and financial history.
The digital assistant supports people throughout their financial lives, from their first paycheque to their first home. The company seeks to positively impact the lives of millions of young people with limited financial literacy who face increased pressure on their finances as the cost-of-living crisis escalates.
