GoHenry, which provides a pre-paid debit card and corresponding app to minors as young as 6 and no older than 18 that in turn can be controlled and topped up by parents, has raised $40 million.
Led by Edison Partners, the round also had participation from Gaia Capital Partners, Citi Ventures , and Muse Capital.
GoHenry is not disclosing its valuation with this round, its first institutional fundraise. Prior to this, the startup had raised about $30 million from friends and family, and via equity crowdfunding.
As another mark of its rise, GoHenry has been seeing some strong growth.
The startup now has 1.2 million members a figure that includes both parents and children and it has doubled its customer base annually for the last six years. It does not disclose how many of those members are parents and how many are children, nor whether the UK or US, the two markets where it is currently active, is the stronger.
In its home market of the UK, GoHenry said that parents paid in £98 million in pocket money in 2019, with their children getting more than £2.2 million for completing tasks around the house. GoHenry’s young users then spent just under £100 million towards the UK economy. (Its cards are personalized with users’ names, eg “GoIngrid” would be on mine, which is a great touch that probably resonates especially well with younger customers.)
And at a time where some companies such as retailers have really been feeling the pinch from the drop in consumer spending this year because of Covid, GoHenry said that it turned profitable in March of this year.