Connect with us

Crunchbase

Rewarding Savers: HMBradley Raises $18.25M To Bank On Consumer Saving Habits

The young company aims to offer higher annual percentage rates as customers save more….

Published

on

As consumers look for ways to make their money earn more money, digital banking platform HMBradley is developing programs to reward savers.

Subscribe to the Crunchbase Daily

The Santa Monica, California-based startup closed on $18.25 million in Series A funding to build on its credit program and savings offerings. Acrew Capital led the round, which gives HMBradley approximately $22 million in venture-backed funding since the company was started in 2019.

“Everyone is paid the same interest rate,” Zach Bruhnke, co-founder and CEO of HMBradley, told Crunchbase News. “When you talk to a typical bank CEO, they want long-term, stable deposits that are growing. Consumers want to make more money for their money.”

The young company aims to align those incentives by offering higher annual percentage rates as customers save more. Not everyone will be in the top tier, Bruhnke said, but he believes this approach will drive more adoption.

For example, customers won’t earn dividends if they don’t utilize direct deposit, but people who save up to 20 percent of their earnings will yield up to 3 percent in interest.

“Tiers vary–the average is 2 percent APR–but it is really about aligning consumer behavior with the percentage of income they are saving,” he added.

Offering rewards is one of the up-and-coming attraction and retention approaches fintech companies are utilizing. A Crunchbase data search for fintech companies that described offering rewards to consumers yielded a little over 118 venture-backed companies that raised money in the past five years.

Companies raising more than $1 million in the past month include:

  • Fetch Rewards, which raised an $80 million venture round;
  • Bumped, raising a $10.4 million Series A; and
  • Paceline, which brought in a $5 million seed round.
  • Meanwhile, HMBradley unveiled its savings program in April–through an arrangement with Hatch Bank–and has received more than $90 million in deposits. Its deposits doubled month-over-month in October, Bruhnke said.

    In July, the company introduced a credit card and its one-click credit application. The card offers 3 percent cash back for purchases in their highest spending category, 2 percent for the next highest category, and 1 percent for all additional charges. Consumers who pair the card with a deposit account earn more.

    “One-click credit is going to be the future because consumers will know where they stand and what they are good for in an easy manner,” Bruhnke added. “There is a renewed focus on how to drive deeper in the mindset of customers. Engagement is double what we have seen, and if it continues to grow, we think consumers will expect credit in a different way.”

    Vishal Lugani, founding partner at Acrew Capital, supported the Acorns portfolio while he was with Greycroft and said in an interview that he is impressed with how fast the HMBradley team was able to roll out a credit program. It was a testament to the team’s early vision of setting everything up on the back end before launching.

    “The engagement I saw with early users of the company was exceptional, measured by the percentage of people sending their paycheck for direct deposit, opting in with the one-click credit, and the staggering percentage of users engaging with their savings goals,” Lugani said. “While other credit card companies’ rewards programs are struggling, HMBradley is rewarding you on what you spend regardless of where.”

    Illustration: Li-Anne Dias

    Source: https://news.crunchbase.com/news/rewarding-savers-hmbradley-raises-18-25m-to-bank-on-consumer-saving-habits/

    rewarding-savers:-hmbradley-raises-$18.25m-to-bank-on-consumer-saving-habits

    Crunchbase

    Card Issuer Marqeta Valued At More Than $17B in Nasdaq Debut

    Chief Marketing Officer Vidya Peters tells Crunchbase News that the IPO “has been a wonderful validation of the modern card issuing industry.”

    Published

    on

    Shares of Marqeta, an Oakland-based modern card issuing platform, popped on the first day of trading Wednesday, closing at $30.52 per share, up 13 percent from opening price of $27. Marqeta is listed on the Nasdaq Global Select Market under the symbol MQ.

    Subscribe to the Crunchbase Daily

    Marqeta now has a market value of $17.3 billion, according to Yahoo, which is based on 586 million of outstanding shares.

    The company filed in May to go public via an initial public offering. Since its inception in 2010 by Jason Gardner, Marqeta has raised a total of $528 million in known venture capital, according to Crunchbase data. Its last disclosed round in May 2020 valued the company at $4.3 billion.

    Vidya Peters, chief marketing officer for Marqeta, told Crunchbase News that the IPO “has been a wonderful validation of the modern card issuing industry and what we have done over the last decade.”

    She went on to say that there is a “massive $74 trillion market opportunity ahead of us, which provides an endless runway.”

    And, as a payments infrastructure company, being publicly traded enables Marqeta to be transparent on its financial health to stakeholders and customers.

    “It also provides a massive arsenal to accelerate our product roadmap and fuel our global expansion,” Peters added. “We are already in 36 countries and now we can accelerate even faster.”

    To complement prepaid and debit card offerings, in the past year Marqeta added credit, which Peters touted as being the first company to offer all three.

    She also believes this is just the start for what Marqeta can enable with innovative offerings, such as open APIs so that developers can build their own card-issuing products.

    “Marqeta is just scratching the surface with cards,” Peters added. “Imagine being able to have your check deposited onto your card, buy now, pay later, peer-to-peer payments and even monetize your cryptocurrency. The possibilities are endless, and in our next chapter we are in a position to unlock all of that with our card types.”

    Among the S-1 statement disclosures, Marqeta touts customers, such as Affirm, DoorDash, Instacart, Klarna and Square, which it reported was its largest customer, accounting for 70 percent of its net revenue in 2020.

    It reported $350 million in fourth-quarter 2020 annualized net revenue, operates in 36 countries, and has issued more than 320 million debit, credit and prepaid cards to date.

    The company reported $107.9 million in revenue for the first quarter ended March 30, 2021, more than double from the same three-month period in 2020. It narrowed its net loss to $12.8 million during the quarter from $14.5 million last year.

    Prominent backers include 83North II, Coatue, ICONIQ Capital, Granite Ventures and Discover Financial Services, according to its filings. With the exception of Discover, all of the remaining entities led investments into the company, according to Crunchbase data.

    Illustration: Li-Anne Dias

    Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

    The company filed in May to go public via an initial public offering. Since its inception in 2010 by Jason Gardner, Marqeta has raised a total of $528 million in known venture capital, according to Crunchbase data. Its last disclosed round in May 2020 valued the company at $4.3 billion.

    Source: https://news.crunchbase.com/news/card-issuer-marqeta-begins-trading/

    card-issuer-marqeta-valued-at-more-than-$17b-in-nasdaq-debut

    Continue Reading

    Crunchbase

    ID Verification Company Clear Files To Go Public As Travel Picks Up

    If you’ve walked through security at a major airport in the United States, you’ve likely seen signage for Clear, which allows enrolled members to pass through a security checkpoint quickly by scanning their eyes and face.

    Published

    on

    Clear, the company known for using biometric data to verify identities, has filed to go public.

    Subscribe to the Crunchbase Daily

    If you’ve walked through security at a major airport in the United States, you’ve likely seen signage for Clear, which allows enrolled members to pass through a security checkpoint quickly by scanning their eyes and face.

    While it’s perhaps best known for its airport usage (investors in the company include United Airlines and Delta Air Lines), Clear is also used for identity verification and security at live events. The New York-based company reported having 5.6 million cumulative enrollments. Clear is available in 38 airport locations and works with 26 sports and entertainment partners, according to the company.

    Among the largest stockholders in the company are Delta Air Lines, General Atlantic, and T. Rowe Price.

    Clear is heavily reliant on travel and live events, both of which were essentially put on pause during the COVID-19 pandemic. But even though travel and live events took a hit, Clear still grew its memberships and revenue, and brought down its losses, according to its S-1.

    The company reported nearly $230.8 million in revenue last year, up 20 percent from $192.3 million in 2019. Though the company’s total bookings declined 10.6 percent from 2019 to 2020, its net losses shrunk down from $54.2 million in 2019 to $9.3 million in 2020.

    The company acknowledged in the “Risk Factors” section that the pandemic limited its growth in airports, the entertainment industry, and events.

    “We experienced a decrease in enrollments for our airport service and a decrease in membership renewals,” the company wrote. “In fiscal year 2020, our Annual CLEAR Plus Net Member Retention declined to 78.8% (compared to 86.2% in fiscal year 2019). We expect that COVID-19 will continue to adversely impact our airport enrollments and business in 2021 and possibly beyond.”

    Clear also acknowledged that its performance is dependent on the strength of the travel industry, since it “derived substantially all of our historical revenue from members who enroll in CLEAR Plus, which includes our Registered Traveler Program service at U.S. airports, and one of our growth strategies is to continue expanding in our domestic aviation network.”

    Goldman Sachs and JP Morgan are among the underwriters for the IPO. The company intends to list on the New York Stock Exchange under the ticker YOU.

    Illustration: Dom Guzman

    Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

    Source: https://news.crunchbase.com/news/id-verification-company-clear-files-to-go-public-as-travel-picks-up/

    id-verification-company-clear-files-to-go-public-as-travel-picks-up

    Continue Reading

    Crunchbase

    Exclusive: Women’s Supplement Startup Rae Wellness Closes $9.5M Series A

    Rae develops supplements targeting women’s well-being in sexual, hormonal and mental health.

    Published

    on

    Minneapolis-based Rae Wellness got a cash infusion of $9.5 million in Series A funding to continue developing its supplements targeting women’s well-being in sexual, hormonal and mental health.

    Subscribe to the Crunchbase Daily

    PowerPlant Partners led the round and was joined by M13, Able Partners and Victress Capital. Co-founder and CEO Angie Tebbe founded the company in 2019. She did not disclose the company’s total funding to date.

    Three years ago, Tebbe was a Target executive with two toddlers when she noticed that her own well-being was not a priority.

    “I thought about what wellness meant to me,” she told Crunchbase News. “I grew up in a holistic household and wanted an opportunity to honor that. I left my career to pursue my own well-being and take better care of myself.”

    A believer in the power of supplements, she went in search of the right ones for her. During that diligence, she found that either quality products did not exist — many were sugary and gummy — or they were very expensive. That’s where Tebbe said she saw whitespace to create products.

    Rae Wellness started out as direct-to-consumer in 2019, but by 2020 was on shelves in Target stores and selling on Amazon. It is also available in Anthropologie and will be in Thrive Market and other retailers later this year, she said.

    “We’ve been ramping up fast — it’s a crazy dream come true,” Tebbe added. “We needed a big infusion to get to the scale we want, which includes creating an omnichannel brand.”

    The company is going after the global dietary supplement market, which was valued at $140.3 billion in 2020, and is expected to grow at an 8.6 percent compound annual rate from 2021 to 2028, according to market research firm Grand View Research.

    In the first year of business, Rae Wellness reached 1 million customers, and Tebbe said the company is poised for triple-digit growth this year. As such, the new funding will go toward that growth of reach, brand awareness and partnerships.

    “We are thrilled to see women are putting themselves on the priority list,” she said. “We are continuing the journey to create pure and powerful supplements to support women’s journey to feel better.”

    Dan Gluck, partner at PowerPlant Partners, said his firm is tracking the supplement category and that the opportunity is huge, with the U.S. market forecasted to be $50 billion by 2024, as more adults take dietary supplements.

    With the increasing concern around health and wellness and clean beauty, companies like Rae Wellness have an opportunity to take market share, he added. By focusing on clean and green brands and ingredients that come at accessible price points, Gluck said Rae is resonating with customers.

    “From Angie’s experience as a Target executive, she has an insight that most entrepreneurs don’t have,” Gluck said. “We also loved her vision, passion and enthusiasm, as well as her rationale around building the business into a world-class organization.”

    Illustration: Dom Guzman

    Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

    “I thought about what wellness meant to me,” she told Crunchbase News. “I grew up in a holistic household and wanted an opportunity to honor that. I left my career to pursue my own well-being and take better care of myself.”

    Source: https://news.crunchbase.com/news/exclusive-supplement-startup-rae-wellness-closes-9-5m-series-a/

    exclusive:-women's-supplement-startup-rae-wellness-closes-$9.5m-series-a

    Continue Reading

    Title

    Blockchain news13 hours ago

    Long-Term Bitcoin Holders Keep Stacking While Short-Term Holders Keep Selling

    On-chain analyst William Clemente III revealed that long-term holders keep on stacking as short-term holders keep on selling.

    Coinpedia15 hours ago

    Shiba Inu Price Plunge Hard! Should You Buy the Ongoing Dip?

    Shiba Inu Price needs to climb back above $0.000007. If SHIB Price is able to break through this resistance, it...

    Techcrunch18 hours ago

    UBS investment makes Byju’s the most valuable startup in India – TechCrunch

    Edtech giant Byju’s has become the most valuable startup in India after raising about $350 million in a new tranche...

    CNBC21 hours ago

    GameStop sales rise 25% as retailer chases e-commerce growth, says it may sell 5 million shares

    GameStop sales rose 25% in the fiscal first quarter as the company focuses on e-commerce and tries to stage a...

    Bioengineer24 hours ago

    Trial of existing antibiotic for treating Staphylococcus aureus Bacteremia begins

    NIH-supported trial will test Dalbavancin in hospitalized adultsCredit: NIAID A clinical trial to test the antibiotic dalbavancin for safety and

    ZDNET1 day ago

    Avaddon ransomware group closes shop, sends all 2,934 decryption keys to BleepingComputer

    Bleeping Computer worked with Emisoft to create a free decryptor that any Avaddon victim can use.

    Reuters2 days ago

    Internal data from breach circulating online -CD Projekt

    Internal company data leaked during a February security breach is now being circulated on the internet, Polish video games maker...

    Blockchain news2 days ago

    13.38% of Bitcoin’s Money Supply Has Now Moved Between $31K and $40K

    On-chain analyst William Clemente III disclosed that 13.38% of Bitcoin’s circulating supply standing at 18.73 million BTC has moved between...

    Coinpedia2 days ago

    An Extreme Bullish Case Emerges For Ethereum Price, $6000 May Be On Cards!

    The etheruem(ETH) price is attempting to follow a similar path and if it successfully mirrors previous rally, levels above $5000...

    CNBC3 days ago

    Homeowners got $2 trillion richer during the first three months of the year

    Home prices have been soaring, so homeowners have been getting richer, at least on paper. The equity numbers are staggering.

    Review

      Select language

      Trending