Chip, a Fintech that streamlines savings and investment, is seeking growth capital on Crowdcube. According to a note received from the company, the securities offering raised £1 million in under 10 minutes, crashing the Crowdcube servers. The offering was initially available to insiders but is now open to all investors.
The offering for Chip currently stands at over £7.8 million. Investors receive equity at a pre-money valuation of £88.786 million. At the moment, 4497 investors have participated in the online investment offering. Chip has previously utilized crowdfunding to raise growth capital – raising £11.34 million in 2020.
Chip is a Fintech that automatically builds your savings and simplifies investing. Available on both iOS and Android, Chip leverages AI to help users build savings automatically. Currently, there are three plan tiers; a basic free account, a paid subscription (£1.50 every 28 days) that offers full access to Chip’s services, and ChipX (£3 every 28 days). Chip reports more than 400,000 users across the UK growing by 60% year over year.
The digital investment platform said the funding will be utilized to fuel aggressive growth and international expansion.
Chip is on a mission to build the best savings account in the world. This new round of funding is designed to enable Chip to pursue its ambition of becoming a Fintech unicorn and fuel growth across product, technology, and marketing.
Chip claims the title as one of the most successful crowdfunded companies in Europe along with a large investing community at over 17,000 individual investors. While Chip may have been able to fund its growth solely via VCs the company recognizes the benefits of enlisting thousands of shareholders as platform advocates and brand ambassadors.
Simon Rabin, CEO and founder of Chip, issued the following statement:
“I believe there’s nothing stopping us from becoming Europe’s next fintech unicorn. We’re saving more people more money, we’re bringing them all the best savings rates with FSCS-eligible accounts, we’re offering seamless access to investment funds powered by BlackRock, and as a consequence of this amazing product, we’re seeing our revenues skyrocket.”
Simon said this is only the start and shared that in the next 12 months they will be adding more investment products with their immediate focus being on boosting its users base:
“We’re starting from a strong foundation; we’ve already grown our user base 60% YoY to more than 400,000 people, with over £600 million saved to date. Now, we want to take things up a gear, with aggressive growth plans across several marketing channels. This is exactly what this round will help us achieve, and I’m thrilled to give more people an opportunity to join our shareholder community and build the best savings account in the world together.”
Matt Cooper, Chief Commercial Officer at Crowdcube, said they are aligned with community building and involving their users as shareholders. Chip has been progressive and forward-thinking when it comes to equity ownership.
“They have consistently delivered some of the most oversubscribed crowdfunding rounds ever. This round looks set to be no different!”
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