A British finance app geared toward Gen-Z shoppers has hit a $500m valuation regardless of the turbulent backdrop which has know-how corporations since Russia’s invasion of Ukraine three months in the past.
Sky Information has learnt that Cleo, which was based by Barney Hussey-Yeo in 2016, has raised $80m in new capital from buyers together with Sofina, a listed tech investor which has backed corporations equivalent to Typeform and Graphcore.
The fundraising was orchestrated over a interval of a number of months however was solely finalised after stress started to be exerted on the valuations of capital-hungry progress corporations.
Cleo is a digital assistant which provides customers proactive monetary recommendation with a particular tone of voice that goals to keep away from the jargon typical of consumer-facing choices within the sector.
It has amassed an array of heavyweight backers in earlier funding rounds, the final of which occurred 18 months in the past and raised roughly $40m for the corporate.
Sources near Cleo mentioned the brand new capital injection had been agreed at a valuation of about $500m – roughly 5 occasions the extent of the December 2020 fundraising.
One insider added that the corporate’s accelerating progress charges coupled with its low cashburn degree meant it had been capable of persuade buyers to again it on the new valuation.
Cleo now serves hundreds of thousands of younger shoppers within the US, and claims to be the one fintech based within the UK earlier than launching within the US after which making that its core market.
Elevating capital now will allow Cleo to take care of and develop its service throughout an financial downturn that many economists consider could possibly be protracted.
It additionally intends to extend its workforce from 140 full-time equal workers to roughly 220 by the top of the 12 months.
The corporate’s current backers embody blue-chip enterprise capital names equivalent to Balderton Capital and LocalGlobe, with particular person buyers together with founders of tech unicorns equivalent to Skype and Smart.
Cleo declined to touch upon the fundraising or its new valuation.