Gen Z financial assistant app Cleo has raised $80 million, pegging its valuation at $500 million.
Cleo raised the $80 million from Brussels-based holding company Sofina, Sky News reports, alongside existing investors Balderton Capital and LocalGlobe and angel investors from Skype and Wise.
The new valuation is around five times that of its December 2020 valuation. At that time, the UK-based fintech raised $44 million in Series B funding “to continue fighting for the world’s financial health”.
Cleo’s previous round – Series A – which took place in 2018, brought in $10 million (a follow-on from the $5 million investment at the start of its journey in 2016/17).
At the time of the Series A, it claimed more than 600,000 users, with 94% of those aged under-35. It also launched in North America in spring 2018, which saw 350,000 people sign up within four months.
Sky News Reports that the company’s growth and its low cashburn level meant it had been able to convince investors to back it at the new valuation.
Cleo intends to use the cash to shore up and expand its services as a global economic winter begins to bite.
Despite the gloomy forecasts, the company also intends to expand its workforce from 140 employees to around 220 by the end of the year.
Although founded in the UK, since launching in the US Cleo has made that country its core market.