Spriggy's prepaid card and purpose-built mobile app help teach 8-18 year olds vital earning, saving and spending skills with real world practice.
The Australian digital pocket money start-up Spriggy has reportedly raised a $2.5 million in funding.
Spriggy has attracted 35,000 customers two years after launching with $300,000 in seed funding, according to finextra.com.
“Spriggy builds important money habits in an environment where practical financial skills are rare to come by. Our prepaid card and purpose-built mobile app help teach 8-18 year olds vital earning, saving and spending skills with real world practice.”, as the company explained on their website.
Spriggy uses a business model in which parents are charged $30 subscription fee per year for each child, as the publication pointed out.
The new financing was led by Alium Capital, while additional funding came from venture capital group Perle Ventures and others.
The start-up was reportedly joined by former ING Direct Australia CEO Vaughn Richtor and former Delivery Hero CTO Scott Fletcher. The two will take advisory positions in an effort to guide the company into the next phase of growth, as finextra.com reported.
The new funding will be used to hire staff and improve the marketing activities of the company.
However, this is not the only service offered in the digital pocket money market. As the report pointed out, Danske Bank in Denmark started a similar app and linked account in July, while UK start-ups Current and goHenry are also competing to introduce smart solutions enabling 6-18 years old to gain confidence with money.
In Australia, CommBank launched the YouthApp that enables children to check their account balance and transfer money from their transaction account. The service was launched in June, as finextra wrote at the time.