Digital challenger bank Loot has closed a £2.2m Series A led by Power Corporation’s corporate VC arm, Portag3 Ventures.
The round, which also drew support from Speedinvest, brings Loot’s total raised to date to £6m.
Loot, which offers a digital current account and contactless card, says the cash will be used to improve its platform, work on new products and grow its team.
Ollie Purdue, who founded Loot in 2014, said: “We are delighted to announce that we have raised £2.2m in our Series A funding round after significant capital backing from a number of investors with impressive experience in the financial technology sector. At Loot our core aim is to enable our users to know more about their spending, so they can do more with their money.
“This means letting them know how much they can spend freely so that they can save and pay their bills. Right now we can replace a traditional bank account and help our users manage their money and track their spending through our app. This investment will help us further expand, bringing new and exciting developments to our product offering and help us reach our goal of growing 12 per cent month on month.”
The startup is targeting digital natives and seeks to give them greater control over the money.
Stephanie Choo, managing partner at key investor Portag3, added: “We’re really excited to be supporting Loot as they continue to develop both their brand and new features. Loot has already had a huge impact on their target market, which consists predominantly of students and young professionals – we’re looking forward to Loot’s expansion over the next year and beyond.”
Loot says it has signed up more than 50,000 users to date.
Notable investors in the startup also include Global Founders Capital, which has backed Iwoca, Kreditech and Facebook.