Cleo unlocks $80 million to help Gen Z weather the cost-of-living crisis

UK-based financial app Cleo has raised $80 million in funding to double-down on the U.S. market and help Gen Z audiences improve their financial health and wellbeing. The Series C round was led by Belgium-based investment company Sofina and backed by existing investors, including EQT and Balderton Capital. Over the course of 6 funding rounds, Cleo has raised approximately $137 million and is an Entrepreneur First alumni. 

Founded in 2016, the digital assistant supports people throughout their financial lives, from their first paycheque to their first home. The company seeks to positively impact the lives of millions of young people with limited financial literacy who face increased pressure on their finances as the cost-of-living crisis escalates. The AI-based assistant can set targets, put away savings automatically, and answer budget-related questions.

Barnaby Hussey-Yeo, founder and CEO of Cleo, said: “The vast majority of Gen Zers in the U.S. are living from paycheque to paycheque. It’s harder than ever for them to get ahead – particularly as the price of everything continues to increase – and yet this audience continues to be neglected, or worse, exploited, by the traditional financial services industry.”

Cleo will use the new funding to expand its headcount from 140 to over 220 and continue iterating and improving on its product suite.

Harold Boël, CEO at Sofina added: “Investing in Cleo illustrates our strategy of building a diversified portfolio of businesses leveraging technology to improve people's lives. Cleo's mission of bringing fintech-enabled personal financial empowerment to many people worldwide resonates with our own.”