MoneyLion, a fintech startup that pairs wealth investing with personal financial management and credit products, has raised $42 million in a Series B funding round.
The new round, led by growth equity investment firm Edison Partners, brings total funding in MoneyLion to $67 million since its founding in 2013.
MoneyLion targets financially underserved middle class consumers with a combination of products, from savings tools, to robo-advisory services and personal loans, accessible from a single mobile app. The firm takes aggregated data from subscriber bank and credit card accounts to offer users spending tips and investment advisory services alongside short-term loans to help with unexpected expenses.
The company has originated over 250,000 loans to date to a group of 1.5 million total users and recently launched a $29 per month subscription package, MoneyLion Plus, that offers access to cheaper loans and automated budgeting tools.
Edison invested $15 million of the $42 million follow-on investment, raising its total stake in the firm to $27 million.
Chris Sugden, managing partner at Edison Partners, says MoneyLion hits a sweet spot of underserved consumers who do not fit the super-prime mass affluent category catered to by traditional financial institutions and wealth management startups.
“MoneyLion brings consumer credit and savings to the financial middle class," he says. "By delivering both a liability and wealth management digital solution on the same platform, MoneyLion brings a complete financial toolkit for consumers who earn less than $100,000.”