CLEO RAISES $80 MILLION TO HELP GEN-Z WEATHER THE COST-OF-LIVING CRISIS

The Series C round was led by Sofina, which joins a stellar cast of global investors, including EQT, Balderton, and LocalGlobe.

NEW YORK, NEW YORK, UNITED STATES, June 29, 2022 /EINPresswire.com/ —
> Founded in 2016, Cleo supports and empowers young people to form better money habits
>The company has helped millions of users on their financial journey, with almost half of new customers converting to one of Cleo’s paying subscription tiers.
> Cleo is a unique example of a British company succeeding with a US-first growth strategy; the company is enjoying ARR of $30m and 3x year-on-year growth
>The investment will fund Cleo’s continued US growth, including a significant increase in employee headcount

New York, US. 29 June 2022: Cleo has announced its $80 million Series C funding round as it seeks to double-down on the US market and help Gen Z audiences improve their financial health and wellbeing.

Founded in 2016, Cleo is a digital assistant that supports people throughout their financial lives, from their first paycheck to their first home. The company seeks to positively impact the lives of millions of young people with limited financial literacy who face increased pressure on their finances as the cost-of-living crisis escalates.

By reaching these people at the start of their journey with clear and simple guidance – delivered in a fresh, engaging tone of voice that pulls no punches – Cleo can completely change the trajectory of their financial life. 84% of people feel better about their money after just one month of using Cleo’s app, while average engagement levels with Cleo are more than 250% higher than competitors.

The company has helped millions of users on their financial journey with over half converting to one of Cleo’s paying subscription tiers within the first 12 months of downloading the app – unprecedented for a personal finance app aimed at young people.

The Series C fundraise was led by Belgium-based investment company Sofina Group, supported by participation from existing investors, including EQT & Balderton Capital.

It caps a remarkable success story for the British startup, which has deliberately embarked on a US-first growth strategy to displace traditional US financial services providers that make excessive profits by charging customers unfair and unnecessary fees.

Speaking about the raise, Barnaby Hussey-Yeo, Founder and CEO of Cleo, said: “The vast majority of Gen Z’ers in the US are living from paycheck to paycheck. It’s harder than ever for them to get ahead – particularly as the price of everything continues to increase – and yet this audience continues to be neglected, or worse, exploited, by the traditional financial services industry.”

“We’re here to provide personalized financial support and guidance to these young people, giving them a helping hand as they seek to better manage their finances, build their credit profile and weather the storm caused by the cost-of-living crisis. Our latest raise enables us to double-down on our US presence and focus on delivering deeper engagement so that we can better support our customers through the difficult days ahead.”

Cleo will use the new funding to expand its headcount from 140 to over 220 and continue iterating and improving on its product suite.

Hussey-Yeo added: “Later-stage fundraising has become a lot more challenging since the start of the downturn, and we’re gratified by the enthusiasm shown to us by both new and existing investors. Our investors recognize the vital work we’re doing in giving young people a stronger financial foothold. The goal is to build an enduring, trusted relationship with this audience – by speaking their language and giving them financial services support tailored to their unique needs and circumstances. It’s a huge market opportunity and one that, thanks to this raise, we’re well-placed to capitalize upon.”

Harold Boël, CEO at Sofina Group said: “Investing in Cleo illustrates our strategy of building a diversified portfolio of businesses leveraging technology to improve people’s lives. Cleo’s mission of bringing fintech-enabled personal financial empowerment to many people worldwide resonates with our own. We were impressed by the drive and the talent of the team and look forward to our partnership.”

ENDS

For more information, please contact: rakhee@transatlanticent.com or, visit www.meetcleo.com

Tracked links:
App: https://click.meetcleo.com/tv42/ifk869ur
Web: https://web.meetcleo.com/?utm_medium=PR&utm_campaign=series_c_press_release

NOTES TO EDITORS

ABOUT CLEO:

Cleo is a relationship that supercharges your financial health. Part money app, part AI,
she turns the complexity of your financial life into a conversation. The same kind you’d have with a friend. With a simple chat, she can automate your money life and removes the stress of decision making with deeply personal advice based on your specific needs and financial history. From your first credit card to your first mortgage, Cleo’s got your back.

ABOUT SOFINA:

Sofina is a Belgian family-controlled investment company, listed on Euronext Brussels and controlled by the descendants of Gustave Boël. Sofina aspires to be the preferred partner of entrepreneurs who lead growing companies by backing them with patient capital and supportive advice. Common vision and strong alignment of interests with its partners are paramount in the deployment of the strategy. Sofina operates in Europe, Asia and the United States in four focus sectors: Consumer & Retail, Education, Digital Transformation and Healthcare. For more information, visit: www.sofinagroup.com

Rakhee Rathod
Cleo
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