Digital pocket money startup Spriggy secures A$2.5 million funding
16 August 2017 | 9686 views | 0
Spriggy, an Australian startup that has developed a mobile pocket money app and linked card account, has raised a $2.5 million funding round.
Founded by two former derivatives traders at Citigroup, Spriggy has already amassed 35,000 customers two years after launching the company with $300,000 in seed funding. Spriggy charges parents a $30 subscription fee per year for each child.
The new financing was led by Alium Capital with additional investments from venture capital group Perle Ventures, and several high-net worth individuals. Former ING Direct Australia CEO Vaughn Richtor, and former Delivery Hero CTO Scott Fletcher also joined Spriggy in advisory roles to help guide the company into its next phase of growth. The firm says the funding will be used to hire more staff and extend outreach marketing activities.
Spriggy is not alone in scenting an opportunity in the nascent digital pocket money market. Danske Bank in Denmark launched a similar app and linked account last month, while UK startups Current and goHenry are also mining this seam. In Australia, CommBank in June launched a mobile app dubbed YouthApp, which lets children check their account balance, and transfer money to and from their transaction account, if they have one.