Fintech app for low-income and underserved communities, Pockit has raised $10 million in a growth round. Initially a prepaid card the UK-based fintech has moved its offering to include a ‘prepaid account’ from which customers can ‘send and receive money internationally, set up direct debits, deposit and withdraw cash in 27,000 stores across the UK, make online and in-store purchases, and even get an advance on their salary’. Phew, what can’t it do? It stresses it is not a bank!
According to a PWC report in the UK one-third of the population can’t access current accounts, use debit cards, get insurance or easily access vital tools needed to improve such financial stability. At the same time, around 12 million are reported to have no savings. Companies like Pockit can be a lifeline in this situation.
The funding round was led by Puma Private Equity and includes participation from The North East Development Capital Fund, managed by Maven Capital Partners and supported by the European Regional Development Fund. Funds will be used to continue expanding its customer base and diversifying its product suite.
"For too long, low-income and underserved communities have been let down and left behind by financial services. At Pockit, we’re committed to not only opening doors for these people, but giving them the tools and support they need to feel financially empowered. It’s a problem that has been growing for years, and in the wake of the current economic climate, it’s only set to become more entrenched and more devastating for millions. We want to be the financial champion for those who need it most and this funding allows us to continue being there for even more people in many more ways," says Virraj Jatania, CEO and founder of Pockit.
"We see huge potential in the business. It has a highly scalable business model, and this investment continues our track record of supporting companies with growth potential," says Kelvin Reader, Investment Director at Puma Private Equity.