U.K. youth payments startup Loot hopes to widen its user base following a new $2.2 million funding round.
The company, which has so far been marketed to university students, announced the raise in a June 21 news release and said it plans to upgrade its neobanking app, promote it and roll it out to another 25,000 new users. It currently has 5,000 account holders signed up and is operating in a market for millennial payments that includes the widely popular Venmo service from PayPal.
The app was created for the "impulse-buying youth segment" and provides a personal financial management tool and MasterCard pre-paid account – with a five-minute account opening process – comparable to Simple or Moven. It monitors the spending activity of the card and feeds back future spending forecasts, instant notifications and discounted deals.
The company is using the e-money license of Germany's Wirecard, which also provides the back-end servicing for the account and card.
Speedinvest, an early stage seed and Series A fund based in Vienna, and Global Founders Capital, a “stage-agnostic” venture capital fund based in Munich, participated in the round.