London-founded savings and investment app Moneybox has landed a Series B funding round of £14 million led by Eight Roads, with participation from its existing investors, Oxford Capital Partners and Samos Investments. This round brings the total amount raised by the company to £21.3 million.
Moneybox has created a savings and investment platform aimed mostly at the younger generations who are yet to accumulate significant wealth. Its mobile app allows users to begin investing with any amount starting from £1. One of the most popular features of the app is setting aside the “change” from the user's credit or debit card purchases. Other options include weekly deposits, payday boosts, and on-off transfers.
“The traditional wealth management industry is geared to those who already have wealth—a concept that is alien to many young people,” said Ben Stanway, co-founder of Moneybox. “It creates huge barriers—including impenetrable jargon—for those who want to start saving and investing. We are determined to break that mould and make investing clear, simple and easy to achieve.”
For investments, Moneybox offers three pre-defined starting plans—cautious, balanced and adventurous—which invest in index funds run by Vanguard, Henderson, and BlackRock. Since launching in 2015, the company claims to have had more than 100,000 invest on its platform. Its average user invests £20 a week.