Fintech Remains Hot: Travel Card Currensea Tops Crowdfunding Goal in Hours on Seedrs

Fintech has long been a hot sector of online capital formation and Currensea raising money on Seedrs is emblematic of a popular firm able to raise money quickly in a crowdfunded securities offering. According to multiple reports, Currensea has cruised past its £1 million funding target in about 4 hours.

The offering page indicates that Currensea has raised £1.823 million, backed by 825 investors. The company is offering a 6.01% equity stake at a pre-money valuation of £28.5 million. The securities offering is EIS qualified, so investors receive tax benefits. The offering is a Seedrs Nominee issuance and is approved for secondary market trading. Direct investments start at £50,000.

Currensea has raised growth capital several times on Seedrs, with its first offering taking place in 2019 when the company sold equity at a pre-money valuation of £10 million.

So why the interest from smaller investors? Currensea powers a debit card that can integrate with other bank accounts and removes irritating bank fees from international transactions. Anyone who travels a lot is aware that many bank-issued cards sneak silly fees or ridiculous exchange rate spreads into payments abroad.

The card is a tiered service with the “Essential” tier coming at no annual cost and claiming to save 85% of bank fees. The next level, Premium, costs £25 a year, but provides 100% savings on bank charges and 0% FX rate.  Currensea states that its users automatically receive the best exchange rates available. There are other bells and whistles available.

Currensea reports ongoing growth at 8000 new cards a month.

Currensea explains that it makes its money on its subscription fees as well as traditional interchange fees when the card is used.

Currensea was founded by two recovered investment bankers who were chagrined by the gouging they experienced by banks while on holiday.

Currensea is regulated by the FCA as a payments service provider.