HMBradley lands $18.25m Series A led by Chime investor Acrew Capital
HMBradley, the LA-based banking challenger, has landed $18.25 million in a Series A round led by early Chime backer Acrew Capital.
The fintech, which is also backed by PayPal founder Max Levchin’s HVF Labs, launched its platform back in April this year.
Designed to help US consumers save, HMBradley piggybacks off FDIC-insured Hatch Bank. It offers a 3% annual percentage yield (APY) account.
Aussie challenger Stash, which offered a generous 2.5% interest rate for savers, pulled the rate less than five months after launch. The fintech blamed interest cuts by the central bank.
But Zach Bruhnke, HMBradley’s co-founder and CEO, attests the 3% rate “is not a gimmick”, and that the firm “stand[s] behind it”.
This is despite the Federal Reserve saying last month it will likely keep interest rates at or around zero until the end of 2023.
To date, the fintech claims it has surpassed $90 million in customer deposits. In October alone, it says deposits doubled month-over-month.
The fintech does not specify its customer count thus far but says the average account balance is “nearly $30,000”. This suggests HMBradley has around 3,000 customers.
HMBradley’s lead investor, Acrew, also led fellow US challenger banking service Chime’s $9 million Series A round back in 2016.
The investor also backs Klar, a Mexican challenger which landed a $15 million Series A last month that Acrew participated in.
HMBradley says it will use the fresh capital injection to “ramp [up] its credit program[me]” and grow its team.
Recent new hires include Capital One’s former engineering director Ben Coffman, as well as former Alpine Bank and B&F Capital Markets exec Saira Rahman.
How HMBradley works
The fintech’s app allows consumers to save a portion of their deposits each quarter with an APY rate of 3%. If a customer owns the July-launched HMBradley credit card, then yield on deposits can reach 3.5%.
“HMBradley really stands out for its laser focus on aligning incentives with its customers,” says Acrew’s founding partner, Vishal Lugani.
“The team has deep fintech experience and its growth, which has been incredibly rapid, is indicative of how well its account holders appreciate the offering.”