Almost a year after they closed a Series A round of $11.3 million, fintech startup Digit has brought in $22.5 million in Series B funding. The round w
Almost a year after they closed a Series A round of $11.3 million, fintech startup Digit has brought in $22.5 million in Series B funding. The round was led by Ribbit Capital and all existing investors participated the round. Digit have now raised a total of $36 million in investment so far.
The fast moving company, based out of San Francisco was founded in February 2015. Their target area in the fintech world is personal savings. The company has been making the most of the opportunity that arises from the fact that most Americans, especially the Millennial generation do not save enough money. Despite being the most important aspect of financial health, the savings rate for people in the 18 to 30 bracket is a measly 2%.
Digit‘s product allows the user to connect to their checking account. Their algorithm, which is an easy to use bot, recognizes spending patterns from the account data. Money is then seamlessly transferred into an FDIC insured savings account. These savings can later be used by the user for any purpose.
The company has a tightly packed team of 18 employees at the moment and is expected to expand in coming months with the company planning to invest heavily in product development. Currently, the startup operates only in America and its transaction volumes have gone up from a couple of million dollars per month last year to almost 20 million dollars per month this year.
The relationship between the company and Ribbit Capital seems to be getting better by the day and the primary reason the company took the second round was to work with Ribbit, who have made some big investments in the fintech space.
While the company claims to have helped its customers save over $125 million since its launch, the company feels that they still have a long way to go. It is still to achieve its goal of building a complete financial relationship with its users.