Greenlight, the Atlanta-based fintech startup that encourages parents to open a kid-focused bank account, has reportedly secured USD 260 million during a Series D funding round which was led by private American venture capital firm Andreesen Horowitz.
The round also saw participation from existing investors such as Wells Fargo Strategic Capital, Canapi Ventures, TTV Capital, Goodwater Capital, BOND, and Fin VC. Some new investors such as LionTree Partners, Owl Ventures, and Wellington Management were also involved in Greenlight’s funding round.
It is worth noting here that Greenlight had bagged USD 215 million during a funding round a couple of months ago which had valued the company at USD 1.2 billion. Reportedly, the fresh investments have now allowed the Atlanta-based startup to reach a valuation of USD 2.3 billion.
Greenlight revealed that it will use the fresh funds to boost product development and integrate additional financial services into its platform. The startup will also focus on expanding its geographical reach.
The co-founder and CEO At Greenlight Tim Sheehan was quoted saying that the company is focusing on developing an environment where every child is financially stable. The ongoing COVID-19 pandemic has compelled people to adopt better personal financial habits, he added.
David George, a General Partner at Andreessen Horowitz will join Greenlight’s board of directors. He mentioned that was developed to aid parents to raise financially stable kids. The startup is well-positioned to emerge as a prominent brand owing to its innovative and easy-to-use money management tools.
Greenlight had launched a debit card for kids back in 2017 and has managed to open accounts for over 3 million parents as well as children, who have reportedly saved around USD 120 million using the app. The company has apparently tripled its annual revenue and has doubled the size of its staff since the past year.
This kids-focused financial technology startup had launched its educational investing services called Greenlight Max which allows children to analyze stocks and make relevant investments.
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