An Australian fintech that’s created a system to help parents manage their kids’ pocket money has closed a $2.5 million investment round.
Spriggy’s capital raising was led by Sydney’s Alium Capital, which has featured in several prominent startup funding rounds this year including Unlockd ($30.8 million), HealthEngine ($26.7 million) and Nitro ($US15 million).
Alium was backed up by Perle Ventures and “several high-worth individuals”. Former ING Direct Australia chief Vaughn Richtor and former Delivery Hero chief technology officer Scott Fletcher will join Spriggy as advisors, although it wasn’t disclosed whether they were also investors.
Spriggy consists of a mobile app and “a personalised prepaid Visa card” that provides children 8 years and older a way to “learn real-world money skills” while their parents can keep an eye on their financial transactions through their own dashboard.
Co-founder Alex Badran said kids today are already spending money online using apps from an early age.
“By using their own cards to make purchases, they can see the impact of their decision on their balance in real time. This gives them a greater sense of ownership, while also translating the value behind what they’re doing.”
The system already has 35,000 users and Spriggy announced the new funding would be used to scale up.
“We were impressed with Spriggy’s knowledge of their user and marketplace from day one. The team is incredibly passionate about helping Australian families, and has the insight and know-how to make their vision a reality,” said Alium Capital partner Rajeev Gupta.
Spriggy was founded two years ago and in June moved into a new downtown Sydney office on Pitt St. Badran and fellow founder Mario Hasanakos are both from the investment banking world.
Financial services involving pocket money is fast becoming a competitive field in the Australian startup industry, with Pennybox last week revealing that more than 5,000 families had signed up for its beta testing program.
“If we can help mums and dads raise a generation of Australian kids more financially literate and comfortable with decision making, we can make a real difference in this country,” said Hasanakos.