Micro-Investing Fintech App Provider Stash Secures $125M via Series G led by Eldridge

Stash, a US-based company that offers micro-investment options through a mobile app, has reportedly acquired $125 million in capital through its Series G funding round that was led by Eldridge.

Stash initially began operations by providing a micro-investing app but has now also made an attempt to develop an “all-in-one financial home” that aims to provide banking, investing, financial advice and advanced technology solutions.

Stash reported a 100% increase in new account openings during the past year and the Fintech firm now claims around 5 million customers and manages around $2.5 billion in client assets.

Stash’s management also confirmed that there was an increase of around 50% in the number of clients who are choosing to automate their investments. This suggests a desire to “help better navigate last year’s market volatility,” says the firm’s management, while noting that this is a “testament to the strength of Stash’s long-term investment philosophy.”

With various other digital investment apps – like the platform offered by Robinhood – attracting increased scrutiny due the Reddit-GameStop saga and trading mania, Stash is focused on offering a more balanced and restrained approach to investing (the company claims).

Stash CEO Brandon Krieg, stated:

“We believe in tried and tested principles of regular, long-term, and balanced investing as the key to building wealth. We therefore built Stash to make diversified investing easy, affordable and accessible, backed by personalized advice and accessible education—in order to avoid the pitfalls of short-term speculation and day-trading.”

As reported in September 2020, the team at Stash had claimed that during the recent market volatility and economic instability (due to COVID-19), the Fintech service provider has continued to offer personalized advice and innovative tech to help guide +5M Americans with managing their money.

According to a note shared with CI last year, Stash’s assets under management (AUM) increased to $1.8 billion (as of August 2020), which the company claims is “an 85% increase since the end of February/pre-pandemic.*

As mentioned in the update (from August 2020):

“On the banking side, [Stash’s] accounts have grown 115%, with 50,000 new customers joining on a weekly basis. And, [the company’s] … commitment to guidance helps to ensure customers prioritize ‘staying the course’ during more volatile times in the market, a key pillar of healthy saving and investing habits.” 

The Stash team further noted:

“Even amid market volatility, there was a 30% increase in Auto-Stash transactions (Stash’s suite of automated tools) in August, compared to March 2020, resulting in a 36% increase in saved money.”

As reported in March 2019, Stash had secured $65 million through a Series E funding round and had launched a Banking & “Stock-Back” Rewards Program.

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