UK-based kids’ bank account app gohenry raises $40 million

LONDON (Reuters) – Children’s bank account app gohenry said on Tuesday it had raised $40 million to fund expansion in its home market of Britain and in the United States.

Gohenry, which was founded eight years ago, offers accounts for children charging parents 2.99 pounds ($3.99) per month. It is used by 1.2 million parents and children.

A raft of fintechs have launched services for children and teenagers in recent years, hoping to capitalise on an ecommerce boom and hold on to new customers into adulthood.

Gohenry said the funding round was led by U.S. growth-equity firm Edison Partners and included investment from Gaia Capital Partners, Citi Ventures, and Muse Capital.

Alex Zivoder, gohenry’s chief executive, told Reuters last month the company – which made a 5.8 million pound pretax loss last year – was on track to make a profit within a few years and made an underlying profit in the second and third quarters of 2020.