US-based micro-investing app developer Acorns secured $30m in financing yesterday from investors including payment technology provider PayPal and e-commerce company Rakuten, the latter taking part through its Rakuten Fintech Fund.
Acorns runs an app that enables people to automatically invest the change from their daily purchases in a low-cost, diversified portfolio of exchange-traded funds offered by renowned asset managers.
The app, launched in August 2014, has secured 850,000 account holders so far, and Acorns plans to use its latest funding to increase the range of automated investment options it offers.
Acorns has now raised $62m altogether, having secured $23m in an April 2015 series C round co-led by Greycroft Partners and E.Ventures that also included Sound Ventures, Garland Capital and Math Venture Partners.
Joanna Lambert, PayPal’s vice-president of global consumer product and engineering, said: “Acorns and PayPal share a vision of democratising financial services and offering innovative solutions to help people build financial health.
“Technology is breaking down barriers to financial participation. PayPal is excited to support Acorns as they continue to use mobile technology to innovate in micro-investing, and empower millennials to take charge of their finances.”
Oskar Mielczarek de la Miel, managing partner at Rakuten FinTech Fund, added: “We are very excited about Acorns’ high growth model and the close alignment between Acorns’ philosophy of financial empowerment of the millennial community and Rakuten’s core values.”