The latest company gaining the backing of National Australia Bank Ltd's (ASX: NAB) NAB Ventures is pocket money app for kids, Spriggy.
Founders Alex Badran and Mario Hasanakos announced today that Spriggy raised $35 million in its series-B funding round.
The funds will be put towards the company's growth plans, which require more dedicated designers, engineers, and problem solvers.
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Spriggy springs from financial education
A Sydney-based startup in the fintech space — that's a line we tend to hear a lot. However, where Spriggy differs is the demographic it's aimed towards.
Now boasting more than 400,000 mums, dads, grandparents, and kids, the company offers an app that gives kids the opportunity to explore and learn finances while maintaining some parental controls.
Through the app, parents can stipulate pocket money for jobs, create savings goals, and monitor spending. Whereas on the kids' side, the app offers a means of learning about money (whether earning, saving, or spending it) in the modern world.
Spriggy's co-founder and co-CEO Mario Hasanakos said:
The biggest pain point or mistake we see is parents forgetting to pay pocket money because they don't have cash on them, or they're just busy running the household… That means the child doesn't have regular exposure to money and then they don't build those regular habits over time.
The company makes money by charging a membership fee of $30 per child per year. This single fee enables card locking, automatic payments, merchant restrictions, and more.
NAB Ventures funding outside the ASX
According to the announcement, NAB Ventures is the newest investor in Spriggy. Existing investors Grok Ventures and Perennial Value Management also took part in the $35 million funding round.
Furthermore, the funding will help the company expand upon its current feature set across a two-year period. From inspecting the company's website, it appears it is also moving into investing with Spriggy Invest.
NAB Ventures managing director Todd Forrest explained why the venture arm of the ASX-listed big four bank is investing in Spriggy.
It's so easy for young people to set up 10 different accounts, trade on credit and they can lose their money so quickly. That's why we're investing in Spriggy, which is building tools for young people to manage money in a completely digital environment, which is exactly how it works for adults.
Todd Forrest
Mr Forrest also mentioned it is a strategic investment for NAB Ventures. He added it could bring the app to its members of the ASX-listed bank, NAB.
