US-based micro-investment platform Acorns Grow is in the process of raising more than $100m in a funding round led by an unnamed corporate investor, Bloomberg has reported.
The deal would value Acorns, whose existing backers include e-commerce firm Rakuten and payment technology producer PayPal, at $700m, people familiar with the matter told Bloomberg.
Acorns operates a mobile app that collects spare cash from users’ daily transactions and automatically invests the money in a personalised portfolio of exchange-traded funds operated by large asset managers such as Vanguard and BlackRock.
The company also offers a service specifically aimed at saving for retirement and has unveiled plans to launch its own debit card. It has attracted approximately 4 million users to date.
The round would come after $159m of earlier funding, according to figures from deals database CB Insights cited by Bloomberg. Most recently, private equity firm TPG invested an undisclosed sum in Acorns in January this year through its Rise Fund.
Rakuten’s Fintech Fund and PayPal provided $30m in series D financing for the company in 2016, bringing the funding disclosed by the company at that point to $62m.
Acorns’ backers also include Greycroft Partners, E-Ventures, Sound Ventures, Garland Capital, Math Venture Partners, Capital Group, Bain Capital Ventures and angel investors Ashton Kutcher and Kevin Durant.
