Just five months after closing on a $131 million Series C, mobile banking startup Current has raised a fresh $220 million. The Series D was led by new investor Andreessen Horowitz, with participation from returning investors including Tiger Global Management, Sapphire Ventures and TQ Ventures, a fund managed by media executive Scooter Braun.
Current began as a debit card for teens, allowing parents to easily track and control their kids’ finances. The company has since expanded its focus to include people who may be overlooked by traditional banks due to financial insecurity. Like the many other “neobanks” or challenger banks gaining popularity right now, Current offers features like free overdrafts, quick direct deposits, banking insights, spending notifications, free ATMs and the ability to deposit checks using your phone’s camera. It was also one of the first banks to transfer the early round of stimulus payments last March.
Recently, Current has expanded into creator partnerships too, providing social media personalities like YouTuber MrBeast a new platform to engage with fans. The company says this fresh capital will allow it to develop more partnerships, grow its membership base and expand its platform. The company also told TechCrunch that it plans to invest in a partnership and educational tool that will help users understand cryptocurrency and the crypto market.
“Getting ahead is more important than ever to this generation,” Current CEO and co-founder Stuart Sopp said in a statement. “Building products that solve your members’ financial needs now and have the potential to grow with them is as important as building a brand that is relatable. We’ve always been committed to providing products that make life better and with this new round of funding we’ll continue to innovate to find more ways to provide value, improve financial outcomes and accelerate growth of our company and member base.”
This latest funding comes amid a year of “tremendous growth,” according to Current. The platform touts nearly three million members, a significant surge from the 500,000 users it had just 18 months ago. The fresh capital has also tripled the four-year-old company’s total valuation to $2.2 billion.
Like many other similar startups in this space, Current has benefitted from a broad shift away from traditional brick-and-mortar banks toward mobile banking apps, largely driven by Gen Z. The company continues to offer teen banking options, similar to mobile banking app Step (which, incidentally, also announced that it raised fresh funding on Tuesday). But its stated goal more recently has been to help the hundreds of millions of Americans who live paycheck to paycheck. Either way, its model appears to be resonating.
In fact, David George, general partner at Andreessen Horowitz, says Current’s recent rise in popularity leaves it poised to dominate this burgeoning sector, predicting that, over the next 10 years, consumers will shift even more toward “mobile and consumer-focused banking services” like Current.
“This new generation of customers doesn’t want to bank in physical branches,” George said in a statement. “[Current’s] product is among the best in the market, and they have proven an ability to reach customers who previously were unserved or underserved by traditional banks. We look forward to supporting Stuart and the team as they continue to build the most relevant banking products and services and brand for this next-gen customer.”
Current is headquartered in NYC and is now hiring across the company, with more than 50 open tech positions posted now.
