Fintech startup raises £2m to ‘promote financial literacy for Gen-Z’

Prograd, the fintech startup dedicated to helping young people understand finance, has today announced its $2.5m (approx. £2m) seed round.

The company, founded by two recent London university graduates, is a platform that allows users to set financial goals and find personalized pathways to either earn, save or borrow towards their goals, to “promote financial literacy for Gen-Zers”.

Prograd’s seed round included investment from Deloitte Ventures along with Techstars, ZAKA Ventures, AGAM, Mandeep Singh founder of marketplace Trouva, and new and existing angel investors – both operators and leading figures from the financial industry.

This investment will be used to expand the team’s marketing and development capabilities, improve its digital footprint, launch an app and improve its algorithm products.

Officially starting operations in September 2021, Prograd joined the Techstars London accelerator where it was mentored with one-on-one mentorship from several former startup founders, assigned dedicated growth coaches and had access to capital to grow and scale.

The company was conceived after co-founders Ethan Fraenkel and Marco Logiudice struggled to find sustainable funding options to cover the cost of their master’s degrees.

They realized how little they understood about money matters and the options available. In the end, they ended up taking personal loans at high interest rates that force them to pay back double the amount they borrowed.

Since launching in August 2022, Prograd’s has helped over 15,000 users improve their financial situation by explaining and connecting them with earning, saving and credit opportunities from the likes of Santander, Revolut, Starling, Fiverr, IndeedFlex.

Ethan Fraenkel, CEO and co-founder of Prograd, says: “We are thrilled to have world-class investors supporting us in our journey to educate Gen-Z and help them achieve their financial goals – without financial jargon and with the most cost-effective – efficient way.

“We think one of the biggest issues in consumer finance right now is the lack of personalization and financial literacy. There’s a big divide between the banks, what customers want to do and how the two parties communicate.

“This funding is an important milestone at a time when financial support has never been more critical for young people with the current cost of living crisis and bleak economic outcomes. We want to help this generation find the best solutions for their needs.”

By Matthew Neville – Senior Correspondent, Bdaily

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