The internet abounds with stories about how bad millennials are with their money, but Stackin’ founder Scott Grimes doesn’t believe it’s because they’re buying too much avocado toast.
Instead, he thinks it’s because a large swath of consumers between 20 and 40 years old don’t have an outlet that makes finance relatable to them. So he launched Stackin’ with Kyle Arbaugh to make the world of APYs, interest rates, stocks and bonds more accessible via text messaging.
Today, the Los Angeles-based company, which was founded in 2017, announced that it has raised $4 million in a Series A round. The funding will be used to continue to build on its text messaging features and finance opportunities for its users, Grimes told Built In.
“That’s the heartbeat of our business,” Grimes said. “We want millions of people to be on our platform participating and trusting us as a guide in finance.”
Through their platform, users can sign up and start receiving financial advice via text that’s suited to their financial needs and preferences. Users can link their existing bank accounts to the platform or set up one through the startup’s partnership with Radius Bank. And soon, users will be able to start investing there, too.
An automated chat bot will send users messages a few times a week with advice, reminders to save money or pay bills, help them set up an automated savings deposits, and give them updates on their investments. The goal is to help users become more informed and proactive about their finances, Grimes said.
“There’s such an underserved population that doesn’t have access to information and advice that can help them grow their money,” Grimes said. “The majority of people aren’t involved in a financial ecosystem that could be helpful to them.”
So far 500,000 users have signed up for the platform, according to the company. With this round, the company plans to expand its user acquisition and invest in more features.
Experian Ventures, Dig Ventures, and Cherry Tree Investments led the round, with participation from new and existing investors including Social Leverage, Wavemaker Partners, and Mucker Capital.
Ross Mason, founder of Dig Ventures and former founder and CEO of MuleSoft, are joining the company’s board of directors as part of the fundraising.
