Digital wallet Eco raises $26mn+ in new funding led by a16z Crypto

By Pavithra R

Eco, a digital wallet for saving and spending, has announced securing $26 mn in an investment round led by a16z Crypto, with participation from Founders Fund, Activant Capital, Coinbase Ventures, Slow Ventures, and more than one hundred others.

The firm has secured more than $35 mn in funding. Previously, it has raised $8.5 mn investment led by Expa and Pantera Capital.

“For the first time since the 1970s, we are all losing purchasing power by leaving money in our bank accounts. Because of this—just as we did in the 1970s when money market accounts, credit cards, and individual brokerage accounts became mainstream—we’re seeking alternatives to existing financial products.

But today, there’s a second trend at play: trust in institutions is plummeting. Not only is everyone looking for alternatives, but they are open to new ideas from non-institutional players,” wrote Eco in its blog.

Founded in 2018, Eco puts user’s money back to work for them. With Eco, users can earn up to 5% annually on deposits and get 5% cashback on spending at major merchants, including Amazon, Uber, and more. The firm is developing features to help users pay bills, send money to friends, and more, all from the same single wallet.

“Eco is arriving at the moment we need it most — existing financial infrastructure is failing us, and we deserve something better. Eco puts your money back to work for you. It’s not a bank, checking account, or credit card — we’re building something better than all of those combined,” said Andy Bromberg, CEO at Eco.

Eco is currently focussed focused on expanding the benefits offered to users, meeting the increasing demand for the product, and building towards the future of novel, aligned financial services business models.