GoHenry, the app that offers pre-paid debit cards for kids aged 6 to 18 years, has just announced a funding round worth $40 million.
The round was led by Edison Partners with participation from Gaia Capital Partners, Citi Ventures and Muse Capital.
GoHenry has been profitable since March 2020. It’s one of the few banking services exclusively available for kids. Most financial institutions won’t allow accounts for youngsters.
The app says it now has some 1.2 million members. This includes parents and children. According to these figures, it’s been doubling its customers in the last six years.
In the UK, parents deposited £98 million in pocket money into their kids’ accounts last year.
The app can be used to reward kids for chores, for example. UK parents spent £2.2 million on paying their children for tasks completed.
Parents have full access to the app and can limit their kids’ spending on their debit cards. They can also view reports on how money is being spent and what the cards are being for. There are no overdrafts.
The first month is free and subscriptions are $3.99 per month thereafter.
GoHenry offers personalised debit cards to make things a bit more fun. Kids spent around £100 million in the UK using their cards.
Founded in 2012, GoHenry was quick to realise that smartphone usage among children continues to grow and financial education is an important pillar of their healthy relationship with money.
“For too long, kids have been locked out of the digital economy and parents lacked the tools to help their children gain confidence with money and finances,” said says Alex Zivoder, CEO of the company.
“GoHenry was the first to respond to these needs in 2012 when we launched a groundbreaking financial education app and prepaid debit card that truly empowered children. In 2020, we’ve achieved three key milestones: becoming profitable which many B2C fintechs seek, raising $40m during Covid, and partnering with world leading funds. All three will help us fuel our US expansion.”