Curve Secures $95M Series C Funding for US Expansion

Curve, a financial technology company headquartered in London that consolidates multiple cards and accounts into a single smart card and mobile application, has successfully completed a Series C funding round, raising $95 million. This financing round was spearheaded by IDC Ventures, Fuel Venture Capital, and Vulcan Capital – the investment division of the estate of Microsoft co-founder and philanthropist Paul G. Allen – with additional investment from OneMain Financial, a U.S.-based personal finance provider, and Novum Capital. Existing investors also contributed to this round, bringing the total funding secured by Curve to nearly $175 million.

The company intends to utilize these funds to broaden its international presence, specifically targeting expansion into the United States and strengthening its position within the European market. Furthermore, Curve will focus on the advancement and promotion of its Curve Credit offering.

Currently, Curve reports a customer base of 2 million users and supports Apple Pay, Samsung Pay, and Google Pay across 31 European countries. In December, the company established a joint venture with Plaid to integrate open banking services in the U.K., enabling users to connect and view all their bank accounts in a unified platform. Additionally, Curve has established a subsidiary in Vilnius, Lithuania, to continue serving its EU customers following Brexit, and has formed a partnership with Samsung for its Pay Card.

Despite its successes, Curve has faced some challenges. Its “Go Back in Time” functionality, which allows users to reverse purchases for a period of 14 to 90 days, has drawn scrutiny due to concerns about potentially encouraging unsustainable debt accumulation.

In an interview with TechCrunch, Shachar Bialick, Curve’s founder and CEO, explained: “Our initial goal was to simplify the checkout process for customers. For example, if a user lacks an internet connection or wishes to change the payment card, they can complete the transaction and then modify the charged account at a later time.” He continued, “We observed that customers were leveraging this feature to improve their cash flow during the COVID-19 pandemic. Many requested the ability to retroactively apply credit cards to debit card transactions from January and December 2019, to free up funds in their checking accounts.” Bialick also noted that this demand led to the development of a new product that allows customers to divide payments into installments.

This development may position Curve favorably in addressing criticisms directed at companies like Klarna, which have been accused of facilitating excessive consumer debt.

Curve also recently encountered criticism for a delay in submitting its financial statements to Companies House in London. However, Bialick clarified that this oversight was not critical to the company’s operations: “We experienced a filing delay due to the demands of our fundraising efforts and limited resources, requiring us to prioritize certain tasks. We are currently in the process of submitting the accounts this week.”

Bobby Aitkenhead, managing partner of IDC Ventures, commented: “Curve’s innovative financial approach is increasingly vital as the world rapidly transitions to a digital-first economy.”

Rick Roberts, representing Vulcan Capital, stated: “Curve is reshaping the future of banking by integrating a diverse range of financial products and solutions into a single digital wallet, benefiting both financial institutions and consumers. Their seamless offering arrives at an opportune moment for American consumers seeking enhanced payment security and greater financial control in the aftermath of the pandemic.”