Investing app Stash lands $112m Series F led by LendingTree
Stash, the New York-based investing app, has secured a $112 million Series F despite stock market turbulence during the current crisis.
The round was led by LendingTree, one of the largest online lending marketplaces in the US, and accounts were advised by T. Rowe Price Associates, Breyer Capital, Goodwater Capital, Greenspring Associates, and Union Square Ventures.
TechCrunch says the latest funding puts Stash at a potential valuation of $812 million.
The fintech, which also offers accounts for retirement, custodial and basic banking, surpassed $1 billion in assets and 4.5 million users this month, riding the coronavirus-led trading boom.
Stash puts its deposit success down to its banking as well as investing offering. In Q1 of 2020, it saw a 100% week-on-week increase in customer deposits across both banking and investing.
Users can invest as little as $1, but Stash says the average investment on its platform is $28. The fintech charges flat fee monthly subscriptions between $1 and $9, depending on what services customers use.
Read more: LenderClose secures funding from Financial Plus Credit Union
Co-founder and CEO Brandon Krieg says middleclass Americans – the pocket of the population Stash targets – have “attempted to make financial progress within a system that simply does not serve their best interests or meet their needs”.
“It’s time for them to reconsider the current financial servicing industry as the ‘status-quo’ and take control of their financial life with the customer-obsessed solutions we provide at Stash,” Krieg said in a statement.
The average age of a Stash user is 29 and has an average annual income of less than $50,000. The start-up is part of a wave of fintechs trying to challenge this ‘status-quo’ in the investing industry. Other players include Acorns, Revolut, and Robinhood.
Conversations for Stash’s Series F round were initiated with investors before the coronavirus broke out, but the round did close in April.
“The intention was, and continues to be, focused on customer growth, brand awareness, and to help reach more Americans who need our help in creating a better life, no matter their network or net worth,” a Stash spokesperson told TechCrunch.
Read next: SoFi acquires Hong Kong stock trading app 8 Securities