Greenlight Financial Technology, a US-based provider of bank accounts for children, raised $260m in series D funding yesterday from investors including financial services firm Wells Fargo’s Strategic Capital unit.
The round valued the company at $2.3bn and was led by venture capital firm Andreessen Horowitz, while TTV Capital, Canapi Ventures, Bond, Fin VC, Goodwater Capital, Wellington Management, Owl Ventures and LionTree Partners also participated.
Founded in 2014, Greenlight provides a money management platform and debit card for children that can be controlled by parents using a mobile app.
Parents can set an automated regular allowance through the app, manage chores and adjust spending controls. It has been used by 3 million parents and children to save more than $120m to date.
The funding will enable Greenlight to accelerate its product development and add new services to its platform. The company also plans to use the funding for a geographic expansion and to invest in new strategic distribution partnerships.
Greenlight has raised over $550m altogether, having received $215m from Canapi Ventures, TTV Capital, Bond, DST Global, Goodwater Capital and Fin VC in September 2020 at a $1.2bn valuation.
Drive Capital led the company’s $54m series B round in September 2019, participating alongside financial services firms Live Oak Bank, JPMorgan Chase and Wells Fargo as well as TTV Capital and Relay Ventures.
E-commecre firm Amazon’s Alexa Fund participated in a $16m series A round for Greenlight in 2018 that was led by TTV Capital and backed by financial services firms SunTrust Bank, Ally Financial and NBKC Bank, New Enterprise Associates (NEA), Relay Ventures and Canapi Ventures.
The company had previously raised $7.5m of funding in a 2017 round led by Relay Ventures that was also backed by TTV Capital, NEA and Social Capital.