GoHenry expands into Europe with the acquisition of French FinTech Pixpay
GoHenry, the prepaid debit card and financial education app for children aged 6-18, has acquired French FinTech Pixpay in an agreement that will see the pioneer in financial education expand to Europe for the first time.
Ten years after its launch in the UK and the creation of a new category of financial services, this new agreement will enable GoHenry to rapidly expand its two million plus UK and US membership base and accelerate growth across Europe as the company tries to deliver on its mission to make every child smart with money.
After more than doubling its turnover during the pandemic to $ 42 million in 2021, the acquisition follows a successful fundraising of $ 40 million in 2020 to accelerate the leadership position in the UK and the expansion to the US. Investors include the French growth equity fund Revaia, the American growth equity fund Edison Partners, Citi Ventures and Muse Capital.
In just two years, Pixpay has established itself as a leader in youth banking in France and Spain, with almost 200,000 members. The opening in Spain in November 2021, less than two years after its commercial launch in France, expresses the ambition to become a key player in Europe. Pixpay plans to expand to Italy and Germany later this year. To support the launch, Pixpay has raised more than € 11 million since April 2019 from the investment fund Global Founders Capital and BPIFrance via the Digital Venture division.
Alex Zivoder, CEO of GoHenry, comments: «Ten years ago we saw an opportunity to give young people access to the digital economy. Since then, we have sought to transform financial education for children, teens and their parents through our groundbreaking financial education app and debit card to help children around the world gain confidence with money and finances.
“Pixpay is the most developed player in Europe, and we are pleased to combine our expertise in financial education to accelerate not only GoHenry’s growth, but to accelerate the economic shape of even more children and teenagers globally. This agreement marks an important chapter on the future of financial education. “
Benoit Grassin, CEO of Pixpay, sier: “We are excited to join the GoHenry group as we prepare to accelerate Pixpay’s expansion across Europe. GoHenry’s experience and legacy will only serve to strengthen the already strong offering offered by Pixpay. We look forward to building a strong, long-term relationship with GoHenry, and we are excited about what the future holds. “
GoHenry and Pixpay will continue to operate under their own brands without changes in leadership, headquarters or number of employees. The acquisition will instead allow both companies to accelerate their growth by carrying out synergies in knowledge and resources that will free up funds to reinvest in financial education for children and teenagers.
As part of its commitment to financial education, GoHenry recently launched its first Junior ISA, introduced game-based money lessons in the app, ‘Money Missions’, and continued to champion the importance of financial expertise through its membership in The Center for Financial Capability. Alongside accounting firm Wilson Wright, the company also commissioned a CBI Economics analysis in March this year, urging the UK government to work with industry to prioritize financial education from an early age.
