Financial wellness platform Cleo raises $ 80 million
Cleo, a London-based financial wellness app, has raised $ 80 million, which it intends to use to drive further growth in the United States, accelerate product development and increase the number of employees from 140 to over 200 this year.
The round was led by the Belgian investment company Sofina. Existing investors, including EQT Ventures and Balderton Capital, also participated.
Harold Boël, CEO of Sofina, said: “Investing in Cleo illustrates our strategy of building a diversified portfolio of businesses that leverage technology to improve people’s lives. Cleo’s mission to bring fintech-enabled personal financial authority to many people around the world “resonates with our own. We were impressed with the drive and talent of the team and look forward to our cooperation.”
Helps young people manage finances
Cleo was founded in 2016 by Barnaby Hussey-Yeo, and is a digital assistant that aims to strengthen Gen-Z to form better money habits. With a chat feature, Cleo helps remove stress when making decisions with personal advice based on the user’s needs and financial history.
Based in London, Cleo supports people throughout their financial lives, from their first paycheck to their first home. The company seeks to positively impact the lives of millions of young people with limited financial skills who face increased pressure on their finances as the cost of living crisis escalates.
Barnaby Hussey-Yeo, founder and CEO of Cleo, said: “We are here to provide personal financial support and guidance to these young people, and give 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. “
Offers financial services tailored to specific needs
According to Cleo, by giving people at the beginning of their financial journey clear and simple guidance, long-term financial well-being is improved. The London-based fintech reports that 84% of people feel better about their money after just one month of using the app. Meanwhile, the average engagement level with Cleo is more than 250% higher than the competition.
The startup claims that it has been able to help millions of users on their financial journey with over half of converting to one of Cleo’s paying subscription levels within the first 12 months after downloading the app.
Hussey-Yeo added: “Later stages of fundraising have become much more challenging since the beginning of the downturn, and we are pleased with the enthusiasm we have shown from both new and existing investors. Our investors recognize the important work we are doing to give young people a stronger financial foothold. The goal is to build a lasting, reliable relationship with this audience – by speaking their language and providing them with support for financial services tailored to their unique needs and circumstances. It is a huge market opportunity and one that, thanks to this increase, we are well positioned to take advantage of. “
