A Sydney fintech that gives kids their own Visa card just raised $2.5 million of funding

An Australian fintech that’s created a system to help parents manage their kids’ pocket money has closed a $2.5 million investment round.

Spriggy’s capital raising was led by Sydney’s Alium Capital, which has featured in several prominent startup funding rounds this year including Unlockd ($30.8 million)HealthEngine ($26.7 million) and Nitro ($US15 million).

Alium was backed up by Perle Ventures and “several high-worth individuals”. Former ING Direct Australia chief Vaughn Richtor and former Delivery Hero chief technology officer Scott Fletcher will join Spriggy as advisors, although it wasn’t disclosed whether they were also investors.

Spriggy consists of a mobile app and “a personalised prepaid Visa card” that provides children 8 years and older a way to “learn real-world money skills” while their parents can keep an eye on their financial transactions through their own dashboard.

Co-founder Alex Badran said kids today are already spending money online using apps from an early age.

“By using their own cards to make purchases, they can see the impact of their decision on their balance in real time. This gives them a greater sense of ownership, while also translating the value behind what they’re doing.” Read more

Tony Yoo – Business Insider Australia – 15 Aug 2017