Cleo secures $44 million in Series B led by EQT Ventures

By Sunniva Kolostyak

Financial assistant application Cleo has raised $44 million in a Series B funding round following a 400 per cent growth in revenue in the past year.

The funding round was led by EQT Ventures with participation from existing investors Balderton Capital, LocalGlobe and SBI. They join an existing roster of world-class angel investors including Taavet Hinrikus, Matt Robinson, Errol Damelin, Niklas Zennstrom, Alex Chesterman and Ian Hogarth.

The FinTech provides its customers, largely generation Z, with insights into their financial data to help them make better decisions. Since its inception in 2016, Cleo has reached four million gen-Z and millennial users, 96 per cent of which are US-based.

The funding will help accelerate expansion into the US market, where Cleo is making leadership hires, Barney Hussey-Yeo, CEO and founder of Cleo, said in a statement.

“We’re building Cleo to become the financial advisor that a billion people need. One that talks to you like a real person, able to build trust and relationships like a bank never could.”

“The work we do at Cleo has never been more urgent. This crisis has been devastating to the generation we serve. They’re facing true financial hardship with no one to turn to. I’m delighted that EQT Ventures decided to join us on our mission to fight for the world’s financial health and looking forward to putting this capital to work,” he said.

This latest round will support Cleo on its roadmap to profitability, providing resources to explore new ways to improve credit, build personalised spending plans to stabilise financial safety nets and stop the paycheck-to-paycheck cycle.

Also commenting, Tom Mendoza, Deal Partner at EQT Ventures, said the FinTech is disrupting consumer finance: “They’ve taken a radically different approach to money management and created an AI financial advisor with a personality that proactively delivers personalised insights that help customers spend less and save more. In the current climate, Cleo is now more relevant than ever.

“Getting answers to financial questions is particularly important for the younger generation, many of whom are trying to navigate the economic consequences of coronavirus – from graduates entering a dwindling job market to young professionals struggling to pay rent. As Cleo is a horizontal platform sitting on top of banks, the company will be able to scale globally faster than most of its competitors. The EQT Ventures team is excited to be joining Cleo’s team on the next stage of the company’s journey!”