Mobile bank Current has raised a $220 million round of Series D funding, increasing the bank's valuation to $2.2 billion in five months.
In December, the company raised a $131 million round of Series C funding, at which point the company had doubled its user base over just six months to more than 2 million users. Currently, the company has a customer base that is close to 3 million.
As a result of the new round, the fintech company has roughly tripled its valuation in five months, to $2.2 billion.
The seed round was led by new investor Andreessen Horowitz (a16z). It included Tiger Global Management, TQ Ventures (the fund managed by media executive Scooter Braun), Avenir, Sapphire Ventures, Foundation Capital, Wellington Management and EXPA.
David George, who led the round with a16z, will become a Current board member.
“This new generation of customers doesn’t want to bank in physical branches. We believe there will be a shift in the next 10 years to mobile and consumer-focused banking services powered by innovation in technology, and with Current’s exceptional growth over the past year, they’ve clearly demonstrated they’re at the forefront of this trend. Their 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.” a16z’s David George.
Current's initial business model was centred on providing a teen debit card, which parents controlled. Later the company delve into the realm of offering personal checking accounts powered by the same technology.
The Current app, like a range of modern-day "neobanks," or digital banks, offers a baseline of standard features like free overdrafts, no minimum balance requirements, faster direct deposits, instant spending notifications, banking insights, accessible ATMs, check deposits using your phone's camera and more.
To differentiate its services from others, the company launched a points rewards program. It became one of the first banks to transfer the early round of stimulus payments during the pandemic.
The new funds, according to Current, will be used to grow the company and its member base as it expands its range of banking products - cryptocurrency has been mentioned. In addition, Current will use the new funds for hiring across all roles, including marketing, product, engineering, finance, customer success, fraud and risk, and, of course, crypto.
The company plans to grow to around 200 or 300 in the next 18 months and has 100 employees currently.
