Social Fintech Startup Kroo Secures $24.5 mln In Series A Financing

By Nicholas Say Nicholas Say has been verified by Muck Rack's editorial team
Published on August 10, 2021

Social fintech Startup Kroo has closed a Series A funding round securing $24.5 million to continue offering its banking services with social features.

The funding round was led by Karlani Capital’s Founder Rudi Karsan, allowing the startup to increase its total funding to $38.7 million since having been founded back in 2016. The new funding will be used to boost the startup’s mobilization efforts by building market-leading current account and overdraft features, as well as expanding its team.

The succes of the round will also allow the startup to secure a full UK banking license a process, a fundamental aspect of its business plan. Andrea De Gottardo, Kroo CEO, referred to Kroo’s mission by stating:

“Our mission has always been to remove friction from financial interactions with friends and family. To help our customers get more from their money, and spend more time doing what’s important in their lives. Lofty ambitions, no doubt.”

While the funding round in itself was unusual for an industry known to rely on institutional investors, De Gottardo believes that Rudi Karsan’s leading of the round is a solid reflection of the startup’s potential.

As a product targeted at the new generations, Kroo also aims to provide its users with a way to act to protect the environment. Not only will the app allow users to know their carbon footprint in the future and offset it, but it also has pledged to plant 20 trees for every user they refer.

At this time, the startup offers several products including a pre-paid debit Mastercard with multiple offering social features, as well as a mobile app for Android and iOs. While the current offering of products is low, Kroo is currently working on implementing personal loans, calendar payments, Carbon Offsetting, achievements, and other features.

With traditional banks falling behind in popularity as millennials and zoomers opt for digital banks, the social fintech startup is providing an alternative that offers more than just a way to save and spend money. So far, this model has proven to be successful at capturing a growing audience but only the future will tell how much the industry can grow.

By Nicholas Say Nicholas Say has been verified by Muck Rack's editorial team

Nicholas Ross Say is a news desk editor at Grit Daily. An award-winning journalist, he covers the daily startup beat. He grew up in Ann Arbor, Michigan and has lived in South America and South East Asia. At present, Nicholas lives in Southern Vietnam where the Sun shines, and the noodles flow like wine. He's written for Blockonomi and Coin Journal, among others.

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