Digital bank Kroo’s first crowdfunding round closed today, having raised over £2M, exceeding its initial target by 200%. The final figures saw investment come from over 45 countries and 2,702 investors who contributed, on average over £740.
The success of this round shows the public’s desire for better banking and an alternative to the profit-extraction model still championed by many high street providers.
Andrea De Gottardo, CEO of Kroo, says:
“Kroo launched its first crowdfunding round to build a movement to change banking for good and take on the high street giants. Kroo is building a bank that puts its customer first, giving them the power and agency to influence the business and its products. Owning part of the fast-growing bank also means investors could profit from our success in the future. The low threshold for investment of £10 was to ensure everyone had a fair ability to invest.”
Less than a year since its current account launch, Kroo has now opened 145K current accounts, amassed £800M in deposits and aims to deliver profits faster than any other UK bank with a current account. With fresh investment from this latest round of crowdfunding, Kroo has taken the next step towards building a community of like-minded trailblazers as its values and strong market offering continue to resonate with consumers.
Kroo has become well-known for offering customers a consistently high interest rate, putting more than £15.6m back in its customer’s current accounts. This was against a backdrop of record-breaking profits for the country’s biggest and most well-known banks. In the first nine months of 2023, Lloyds, Barclays, HSBC and NatWest made a staggering £41 billion in pre-tax profits.
“Banking practices that prioritise profits over people have been unchallenged for too long. We believe we can build a genuine alternative for customers who want better from their bank, and their money.”
Investment is managed by Crowdcube. With over £72M raised to date from private investors, the limited shares in this crowdfunding round were offered at the same price as in the current B+ round, which has so far raised £14.5M.
Nazim Valimahomed, Co-Founder and Chief Product and Design Officer at Kroo, says:
“The current banking system is simply broken. We know it, and so does our community. Beyond our strong market offering in the face of rising interest rates, our socially conscious values and approach of doing things differently has resonated with those seeking an alternative to the old systems of banking. We are excited to be joined at the table by so many supporters and likeminded trailblazers and are now even more empowered to disrupt the industry further and become an even bigger voice in the sector as we call for change.”
Kroo is rated excellent on Trustpilot and has quickly earned a reputation as a bank with customer service and products that have people’s backs. In February, Martin Lewis labelled it as ‘the best, open to all, easy access savings with unlimited withdrawals we’ve seen since 2012’ on his primetime money show.