NEW YORK — Stash, one of the fastest-growing banking and investing services in the U.S., has raised $112 million in Series F funding. The round included number-one money marketplace, LendingTree, and funds and accounts advised by T. Rowe Price Associates, Inc., as well as Breyer Capital, Goodwater Capital, Greenspring Associates, Union Square Ventures, Entree Capital, and other investors.
Stash seamlessly integrates advice and education, personalization, and product offerings across investing, banking, saving, budgeting, and more.
In April, Stash said it reached over $1 billion in assets under management—fueled by customer deposits of just $28 at a time. Nearly 10 million Stock-Back rewards have been earned by Stash customers since the launch of the debit rewards program almost a year ago. Additionally, in Q1 2020 alone, Stash saw an over 100% increase in weekly customer deposits across banking and investing, a proof point to the power of the platform even amid recent market volatility and economic downturn.
“We are very fortunate to bring together world class investors, to help accelerate Stash’s goal of bringing digital banking, investing plus financial education and advice to the millions of middle class Americans working hard every day to make ends meet,” said Brandon Krieg, Stash Co-Founder and CEO. “This massive group has attempted to make financial progress within a system that simply does not serve their best interests or meet their needs. It’s time for them to reconsider the current financial services industry as the ‘status-quo’ and take control of their financial life with the customer-obsessed solutions we provide at Stash.”
According to the Federal Reserve’s Annual Economic Wellbeing report, the average American may struggle to just come up with $400 in an emergency. Additionally, per recent Stash research, banking fees cost Americans an average of $364 annually. These statistics not only underscore how widespread America’s savings crisis is, but also further highlight the ways in which traditional financial institutions fail to support the vast majority of Americans’ needs. As Stash continues to provide access to products and customized guidance that empowers millions, this capital raise will support customer growth, brand awareness and further propel the company on its mission to help aspiring middle class Americans achieve financial stability and freedom. Stash offers transparent, flat-fee $1, $3, and $9 monthly subscriptions options that include no-fee brokerage, retirement, custodial, and banking accounts along with a Stock-Back Rewards program that automatically gives Americans fractional shares of stock everywhere they shop.
“We’ve always seen ourselves as a consumer champion—committed to helping people get the most out of their hard-earned money,” said Doug Lebda, Founder and CEO of LendingTree. “Stash’s mission to help Americans achieve financial progress is complementary to ours in every way, and we’ve been impressed with Stash’s speed of execution and commitment to positive customer outcomes. The focus on meaningful financial progress is so relevant, especially in today’s economic environment which has only been amplified by the current pandemic. Giving customers a way to make real strides in achieving financial security is incredibly powerful to our combined missions.”
Goldman Sachs & Co. LLC acted as exclusive financial advisor and WilmerHale served as legal advisors to Stash.