Digital banking platform Oxygen today announced a $17 million Series A round of funding.
The round included Runa Capital, S7V, 1984.vc, EFG Hermes, Rucker Park, and Inventures, in addition to celebrity and prominent fintech investors, including Frank Strauss, Global CEO of the Private & Commercial Bank for Deutsche Bank AG, William Hockey, Co-Founder of Plaid, Ankur Nagpal, Founder and CEO of Teachable, Peter Treadway, and NFL wide receiver Larry Fitzgerald.
Designed from the ground up to meet the unique needs of the way people live and work today, Oxygen provides flexible banking solutions to both consumers and small businesses seeking modern financial solutions. Since launching in January of 2020, Oxygen has seen tremendous growth and engagement, surpassing 125,000 accounts opened and over a 969X revenue increase. Both the consumer and small business accounts have no minimum balance or monthly fees, are FDIC insured via a partnership with The Bancorp Bank, and come with a Visa debit card that includes cashback rewards on selected everyday spending categories and merchants.
“We are humbled that our investors are putting their faith in us with this most recent round of funding,” said Hussein Ahmed, Oxygen CEO. “This investment not only validates what we’ve built but also enables us to continue pursuing our vision of building financial tools that integrate seamlessly with the digital world of today and delight our customers. We founded Oxygen because we wanted to provide financial services in the same way people interact with technology in their everyday lives. We didn’t see that and believe this led to exclusion for many. This is an important milestone, but we are just getting started.”
The first and only neobank in the US to launch with both the consumer and small business in mind, the company continues to attract investment based on its rapid growth trajectory and highly engaged customer base. From digital natives seeking a better consumer banking experience that rewards them to sole proprietors and SMBs – many of whom are first-time small businesses struggling to manage multiple, variable income streams and like the holistic business banking experience that incorporates tools like LLC creation and expense management and the ability to manage both personal and business finances from directly within the Oxygen app.
“Oxygen is the premier banking platform for today’s digital consumer,” commented Andre Bliznyuk, General Partner of Runa Capital, which led the Series A round. “Their all-in-one banking app serves both consumers and businesses, ranging from tech-savvy consumers who are just looking for a better banking experience to burgeoning entrepreneurs and small businesses looking for digital banking solutions that meet their strict requirements. It’s banking done better.”
In addition to Oxygen’s compelling product suite, the company has cultivated partnerships with top-tier companies like Visa, having joined their Fast Track program earlier this year, while simultaneously building a high-value brand designed to empower customers to “do it their way,” in support of entrepreneurship and free thinking.
Frank Strauss, longtime Deutsche Bank retail banking executive and former CEO of Deutsche Postbank Bank, who participated in the round and will act as strategic advisor, views the company as having the right solutions at the right time, seeing Oxygen as ready to take advantage of a significant market opportunity in financial services. “When I witnessed the customer engagement around the Oxygen platform, I knew immediately they were offering something truly different for consumers and small businesses,” commented Strauss. “What’s more, I’ve been struck not only by the vision but also the ability of the management team to execute quickly.”
The company plans to use the most recent funding round to scale its team, accelerate growth, and continue to build best-in-class consumer and SMB banking products.