London-based digital banking startup Loot has raised £2.2 million in seed funding, bringing its total funding to £6 million. The round was led by Power Corporation’s corporate VC, Portag3, and Speedinvest.
Loot was founded in 2014 by 24-year-old Ollie Purdue during his final days at university, after struggling with money management apps and old-fashioned banking interfaces. The concept targets millennials who live through their smartphones. Loot offers a mobile banking app which is connected to a prepaid contactless MasterCard debit card. Every user has his own unique Loot account number and sort code. In December 2016, the company launched their full account, which is designed to reinstate your bank with all the tools built-in to help manage money. Their underlying e-banking services and licenses are provided by Germany’s Wirecard.
“We want our users to know more about their spending, so they can do more with their money,” Purdue said. “This means letting them know how much they can spend freely, so that they can save and pay their bills. Loot’s goal is to work out the best way to manage our users money, so users can focus on what they’re really interested in. Right now we can replace a traditional bank account and help our users manage their money and track their spending through our app.”
In a little more than a year, Loot has gained a customer base of 50,000 customers who can access the account through iOS, Android, and the Web.
According to Purdue, the new funding will be used to implement a mid-term plan to make Loot fully automatic and introduce new social features into their platform while dealing with the emerging competition, “I guess there are two types of competition for us at Loot. The banks and the money management apps,” he said.
Steph Choo, Managing Partner at Power, said of Loot: “We’re really excited to be supporting Loot as they continue to develop both their brand and new features. Loot has already had a huge impact on their target market, which consists predominantly of students and young professionals – we’re looking forward to Loot’s expansion over the next year and beyond.”