Kroo Raises $24.5M Series A from HNWs, Skips VCs

Kroo Secures $24.5 Million Series A Funding

Kroo, a London-based fintech company targeting consumers, initiated operations in February 2019. Last year, the company obtained initial seed funding to support its prepaid card service.

This service distinguishes itself by incorporating enhanced social features, as Kroo aims to evolve into a comprehensive banking provider.

Series A Funding Details

A recent Series A funding round generated $24.5 million (£17.7 million) for Kroo. This investment was spearheaded by Rudy Karsan, a technology entrepreneur and the founder of Karlani Capital.

The acquired capital will be allocated towards achieving a full banking license, anticipated in early 2022.

Unconventional Funding Approach

The funding structure is notable for a fintech startup with banking aspirations, as it lacks participation from traditional institutional investors.

However, this independence provides Kroo with greater operational flexibility as it progresses toward full bank status.

Current Service Offerings

Currently, Kroo provides a prepaid debit card alongside a mobile application. This app facilitates the tracking of both personal and shared finances.

Users can establish payment groups with friends, monitor expenditures, and easily divide and settle bills, thereby mitigating common social discomforts.

Commitment to Social Responsibility

Kroo has committed to donating a portion of its profits to various social initiatives.

Furthermore, the company launched a tree-planting referral program; for each new customer referred, Kroo plants 20 trees.

CEO Vision

Andrea de Gottardo, CEO of Kroo (and formerly chief risk officer since 2018), articulated the company’s vision: “We aim to create the world’s leading social bank.

This bank will be dedicated to both its clientele and the environment. Beyond assisting customers in managing their finances and accessing equitable loans, we intend to empower them to contribute actively to positive global change through initiatives like carbon offsetting and our tree-planting program.”

Investor Perspective

Rudy Karsan expressed his enthusiasm for Kroo, stating: “Kroo presents a genuine opportunity to fundamentally reshape people’s perceptions of banking, and for the better.

The company boasts an exceptionally skilled leadership team and a responsive technological infrastructure, enabling the continuous delivery of valuable banking features.”

Strategic Funding Decisions

During a recent conversation, de Gottardo revealed: “Including the Series A, we have raised over £30 million from high-net-worth individuals and syndicated investors.

We have deliberately avoided pursuing an institutional funding round at this stage.”

He further explained: “We are fortunate to have the support of Rudy Karsan and a consistently reinvesting group of investors. Our intention was to reach Series A without institutional involvement, allowing us freedom from venture capital pressures.

It is now probable that we will consider institutional investment for a Series B round.”