Greenlight Financial Technology, the fintech company that pitches parents on kid-friendly bank accounts, has raised $215 million in a new round of funding.
It’s a huge win for the Canadian-based venture investor Relay Ventures .
Since it launched its debit cards for kids in 2017, the company has managed to set up accounts for more than 2 million parents and children, who have saved more than $50 million through the app.
“Greenlight’s rapid growth is a testament to the value they bring to millions of parents and kids every day. My wife and I trust Greenlight to give us the modern tools to teach our children how to manage money,” said Gardiner Garrard, Founding Partner at TTV Capital, in a statement. “TTV Capital is thrilled to provide continued investment to help the company empower more parents.”
The company pitches itself as more than just a debit card, with apps that give parents the ability to deposit money in accounts and pay for allowance, manage chores and set flexible controls on how much kids can spend.
It’s a potentially massive business that can lock in a whole generation to a financial services platform, which is likely one reason why a whole slew of companies have launched with a similar thesis. There’s Kard, Step, and Current which are pitching similar businesses in the U.S. and Mozper recently launched from Y Combinator to bring the model to Latin America.
“Greenlight’s smart debit card is transforming the way parents teach their kids about responsible money management and financial literacy,” said Noah Knauf, general partner at BOND. “Having achieved phenomenal growth year-over-year, this is a company on the fast-track to becoming a household name. We look forward to working alongside the Greenlight team to support their continued growth.”