Investing app Acorns nabbed $US105 million in funding and now has a higher valuation than robo giant Betterment

  • Investing app Acorns raised $US105 million in funding for its Series E round that included new investors NBCUniversal, Comcast Venture and private equity firms DST and MSD Capital.
  • Acorns is now valued at $US860 million, which is more than Betterment, the largest independent robo-advisor in the world.

Acorns, an app that invests users’ spare change in exchange-traded funds, announced it raised $US105 million in a Series E round that gives the company a valuation of $US860 million.

NBCUniversal, Comcast Ventures and private equity firms DST and MSD Capital, which manages Michael Dell’s personal money, participated in the round. TPG’s The Rise Fund, BlackRock and Bain Capital Ventures were previous investors of Acorns that also invested.

Acorns’ latest valuation bumps it ahead of Betterment, the largest independent robo-advisor with $US15 billion in assets under management. Betterment was valued at $US800 million during its last round of funding in July 2017.

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Acorns has more than 4.5 million customers and over $US1.2 billion in assets under management. Part of the investment will be used to facilitate a partnership with CNBC for creating content around personal finance.

The California-based fintech has already expanded beyond its initial offering. Acorns Later, an individual retirement account (IRA), and Acorns Spend, a checking account and debit card, were both launched over the past year.

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