Newly authorized mobile-only UK bank Kroo has acquired £26 million in capital in order to grow its professional team and further expand its product offerings.
Kroo‘s current product range incudes a prepaid debit card and app, which enables clients to quickly create groups with friends, track spending, and split and pay bills securely.
To date, Kroo claims it has managed to grow organically to 23,000 prepaid cardholders, with more than 120,000 monthly transactions via the platform.
Kroo says it aims to gradually close down the prepaid card scheme and provide its customers the option to transition their existing accounts over to the new Kroo current account, and provide credit products in the foreseeable future.
Andrea De Gottardo, CEO of Kroo, stated:
“The money raised will go a long way in supporting the launch to market of our current account, the development of our lending proposition and the scaling up of the company”
As noted in the update, Kroo is focused on positioning itself as a bank with a “social conscious.”
The company introduced a customer tree-planting referral scheme in June of last year, has a board-level social conscience committee and has committed to donating a percentage of its earnings to social causes.
Kroo has now acquired more than £56 million in equity funding since launch following five series of investment rounds.
Neobanking platforms in the UK continue to acquire substantial funding to support their ongoing growth.
Tred, a company that aims to build the United Kingdom’s “leading” green neo-banking platform, had secured 117% (£702,642) of its £600,000 target (as of May 30, 2022) from 895 investors via its crowdfunding campaign carried out through Crowdcube.
Certified by both B Corp & 1% For The Planet, the company’s debit card “plants trees as you spend & app lets you track, reduce & offset.”
Based in the UK, Tred offers 3.76% Equity; reports a £18,003,980 pre-money valuation;
a £13.51 share price.