Chip, an artificial intelligence-powered savings app, has successfully completed its Series A funding on Crowdcube. The startup raised more than £4 million from a record-breaking 7,036 investors on the equity crowdfunding site.
Chip is on a mission to build “the best savings account in the world” and has already grown to 75,000 accounts, with plans to reach millions of users across the UK in the next four years. The company has already processed £58 million of savings since its previous fundraise through Crowdcube last year.
The app, which is available on the App Store and Google Play, uses an AI-powered algorithm to continuously calculate exactly how much a user can afford to save. It then transfers that money automatically, every few days, into a savings account that pays up to 5% interest.
Simon Rabin, Chip’s founder and CEO, says:
“We believe we’re building the best savings account – one which makes stashing away money as easy as spending it. This record-breaking funding round will allow us to accelerate this, on-boarding millions more users and launching new innovative features. We’re hugely excited to welcome so many new investors into the Chip family.”
The funds will be used to launch new products including ChipX in early 2019. This is a community lending service, which aims to disrupt the UK’s high-cost credit market. Chip savers will have the opportunity to gain higher returns by lending to other users who are overdrawn at a lower cost.
Funding will also support on-boarding of Chip’s waiting list and the roll out of a host of other new features including instant saves, transaction roundups, FSCS protection, smart goals and squad goals.