Pockit – the financial super app for low-income and underserved communities – has raised $10 million in a growth round “led by Puma Private Equity, with participation from The North East Development Capital Fund, managed by Maven Capital Partners and supported by the European Regional Development Fund.”
Having started life as “a prepaid card, Pockit now allows anyone – including the 20.2 million people across the UK who can’t access basic financial services – to open a current account in minutes.”
They can send and receive money internationally, “set up direct debits, deposit and withdraw cash in 27,000 stores across the UK, make online and in-store purchases, and even get an advance on their salary, should an unexpected expense arrive.”
Founded by CEO Virraj Jatania in 2015, Pockit is on a mission “to serve the billions of people who have been left behind by traditional financial services.”
Without access to such financial services, managing finances becomes more difficult and less secure – compounding “an already widespread problem of financial instability for many.”
While the very people who stand “to benefit most from being part of our digital society are left on the outside.” Simple things such as being able “to shop around online for cheaper prices, and getting discounts for paying by direct debit, to vital services like storing your salary somewhere safe and secure just aren’t available.”
Pockit has been built “to finally break down these barriers and put these customers first.”
Pockit goes beyond just “opening the door to basic financial services, though.”
It gives users the power and confidence “to take control of their finances; to improve their financial wellbeing through its credit building feature and budgeting tools, as well as cashback rewards and customer perks.”
With Pockit, users get up to 10% cashback on purchases “made in a growing number of high-street stores including Primark, Argos, Sainsbury’s and more, while being able to save money by switching their broadband and mobile accounts from within the app.”
In this way, Pockit’s appeal stretches far “beyond underserved communities and brings significant benefits to anyone impacted by the cost of living crisis, inflation or anyone looking to make their money go further.”
A recent report found “that six in ten low-income households in the UK in 2023 are not able to afford an unexpected expense, and over half are in arrears. Over seven in ten families are going without essentials.” Yet almost a third of the population “can’t access current accounts, use debit cards, get insurance or easily access vital tools needed to improve such financial stability. At the same time, around 12 million are reported to have no savings.”
The reasons are wide and complex, “from poor credit scores and a lack of correct paperwork, to legacy systems, and the fact such customers aren’t seen as a priority for financial incumbents. This requires a dedicated, agile and tech-powered approach like Pockit.”
Pockit bridges the gaps by “being the financial champion for those who need it most.”
Through partnerships with best-in-class providers of KYC, lending, money transfers and more, Pockit is able “to balance accessibility with robust regulation, all while mitigating risk and being able to respond quickly and effectively to market changes and customer needs.”
Since launch, Pockit’s user base “has grown to more than 800k people, largely through word of mouth, and has processed c. $5bn across 73 million transactions.”
The current funding round takes the total “raised by the company to $50m and the money will be used to continue expanding its customer base and diversifying its product suite.”
Pockit is currently available in the UK but “has ambitions to become the global financial champion for the underserved.”
Virraj Jatania, CEO and founder of Pockit said:
“For too long, low-income and underserved communities have been let down and left behind by financial services. At Pockit, we’re committed to not only opening doors for these people, but giving them the tools and support they need to feel financially empowered. It’s a problem that has been growing for years, and in the wake of the current economic climate, it’s only set to become more entrenched and more devastating for millions. We want to be the financial champion for those who need it most and this funding allows us to continue being there for even more people in many more ways.”