Pocket money app Spriggy has raised an additional $10 million in follow up funding, after its $35 million Series B raise in July last year and the recent launch of a closed beta product exclusively for teenagers as they go on to get their first job.
The $10 million raise was supported by high net worth investors and sophisticated investors. Spriggy has also been funded by NAB Ventures, Mike Cannon-Brookes’ Grok Ventures and Perennial, among others.
“We’re fortunate to have investors who share our vision. They’ve been very supportive and have been supportive over the years and continue to back us and share our values,” co-founder Alex Badran told SmartCompany.
Spriggy was founded in 2015 and launched in 2016 by Badran and Mario Hasanakos, and has grown from a team of 30 last year to more than 80 this year. Badran describes his team as remote first, and while based in Sydney, the team is spread around parts of Australia.
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The current round of funding, Badran explains, will allow Spriggy to further expand its team to around 100 and cater to the growing demand for the product. Spriggy has more than 130,000 families, or 4% of Australia’s families, who use its services every month, with around 650,000 users across Australia.
Financial literacy learnt young
Spriggy’s mission is simple: helping parents teach their children how to manage finances in a safe, controlled environment.
Parents can sign up online in two minutes and then download the app (available at app stores).
Children will receive their own debit cards, into which parents can transfer their pocket money. The app allows parents to oversee their earnings, spending and savings, while also allowing them to send emergency funds when required. They can also earn from chores, set savings goals and manage their own money, while parents have visibility over where the money is spent.
According to Badran, by creating a safe environment for children to “learn about money by doing”, they were helping families set children up for financial success.
“We felt that there are a lot of problems that can be solved by helping raise a generation of kids who build smart money habits. We worked in financial services and saw that there’s huge room to build, especially as cash becomes less and less prevalent,” he said.
“There’s this huge room to build digital experiences that can help people not only solve some of the functional problems they have, but also build good behaviors over time. We think creating experiences that give kids opportunities to use their earned money in the real world and make mistakes in a safe environment is an important learning experience.”
Badran points to how many adults in the 18-30 year category experience depression and anxiety, mainly as a result of financial stress — and how learning how to manage money when young can help children as they transition into adults and take on financial responsibilities of their own.
“We think you can break down some of those barriers early on by tackling the problem in a fun, engaging way,” he said.
“Kids will grow up more likely to tackle the problems head on and build healthy habits around an otherwise stressful topic. When kids eventually leave our platform, it will empower them to make the right decisions over time as they grow.”
Six years down the line, Badran describes the unique experience of seeing kids who grew up using the app now heading off to university.
“We became close to many of our founding families and we recognise that we have to build products not just to account for the financial component but also to solve problems for the entire family.
“We want to make it easier to run the household but also solve deeper issues by helping parents raise children who are money smart.”