Money management app Plum, which has offices in Nicosia, Athens and London, announced this week that it raised more than £16 million in its Series B round.
Series B financing is the second phase of funding for a company that has achieved specific milestones and progressed beyond the initial startup phase.
In addition, Investors in Series B typically purchase shares at a higher price compared to those who invested during Series A.
According to the announcement, the company has secured £13.4m in funding from institutional investors, including a second tranche of investment from strategic partner Eurobank.
Moreover, new anchor investor iGrow Venture Capital has joined the round, alongside previous investors including Venture Friends and Ventura Capital.
The company has also raised an additional £2.7m through crowdfunding, in what has been Crowdcube’s most popular campaign of the year, with more than 5,500 investors from across the UK and EU participating. This brings the total to over £16m raised.
The investment, the company explained, was secured following a period of strong performance for the firm.
“The company has seen exceptional growth since launching in 2017, with more than 2 million customers now using the app to seamlessly set money aside in 10 markets across Europe,” the announcement stated.
Furthermore, assets under management (AUM) for the company recently surpassed £1 billion, having tripled in a period of 12 months.
This increase, the firm said, was “in part driven by the success of Plum’s highly competitive Cash ISA, which launched in March and has opened up greater organic UK acquisition at low-to-zero cost”.
Additionally, revenue for the company has almost doubled year-on-year, “supported by robust subscription streams with average revenue per customer having grown by 40 per cent”.
“With the surge in AUM also contributing to increased revenue, Plum is now on track to reach profitability in 2025,” the announcement added.
“In the meantime”, the announcement continued, “Plum will continue to flesh out its product offering in the UK following the success of its Cash ISA, aiming to provide the most complete app for savers and investors on the market”.
Plum also stated that it has “ambitious plans” for the rest of Europe as well, having recently launched ETFs for EU customers and partnered up with Eurobank to accelerate its growth in the region.
The app’s goal is to reach hundreds of thousands of customers in Greece by the end of 2027.
As part of the strategic cooperation of Plum with Eurobank, the latter will introduce Plum to its customers.
Victor Trokoudes, Plum founder and CEO, said that “it has been an exceptional 12 months for Plum, and this new round of funding is a testament to the hard work of the team and the value we’re providing for customers across Europe”.
“The need for a smart app that helps people grow their money for life has never been stronger, and we’re already delivering this to millions of people,” he stated.
“But we don’t rest – we’re focused on what’s next and how to get even more people maximising their money with Plum,” he added.
He also mentioned that “following the success of Cash ISA in the UK and ETFs in Europe, we’re well-placed to reach profitability which is a major and important milestone for us”.
“And we have game-changing products in the pipeline that will take our app to the next level for customers. It’s a really exciting time,” the Plum CEO concluded.
Meanwhile, Anastasios Economou, Founding Partner of iGrow Venture Capital, said that “iGrow is always looking for transformative ideas such as Plum’s”.
“Making savings solutions accessible to all, not just high-net-worth individuals, is a democratisation and revolution in the industry,” he added, noting that the company is “excited to see the expansion across Europe and Greece”.
“We have full confidence in the Plum team’s capacity to keep expanding,” Economou concluded.
