Challenger bank Current has raised $220 million in a Series D funding round led by new investor Andreessen Horowitz. The latest round tripled the mobile bank’s valuation to $2.2 billion in only five months.
The funding will let Current grow its member base and build out more products, according to a news release. The company, which aims to serve Americans underserved by traditional banks, has raised over $400 million to date.
Current has seen some impressive growth this year with almost three million customers, an increase from the one million member mark it reached last summer.
“Building products that solve your members’ financial needs now and have the potential to grow with them is as important as building a brand that is relatable,” Stuart Sopp, Current CEO and Founder said in a statement. “We’ve always been committed to providing products that make life better and with this new round of funding we’ll continue to innovate to find more ways to provide value, improve financial outcomes and accelerate the growth of our company and member base.”
The round also had participation from returning investors Tiger Global Management, TQ Ventures, Avenir, Sapphire Ventures, Foundation Capital, Wellington Management and EXPA.
“This new generation of customers doesn’t want to bank in physical branches,” David George, General Partner, Andreessen Horowitz, said in a statement. “We believe there will be a shift in the next 10 years to mobile and consumer-focused banking services powered by innovation in technology, and with Current’s exceptional growth over the past year, they’ve clearly demonstrated they’re at the forefront of this trend.”
Current has also grown its “creator partnerships,” the news release read. FinLedger previously reported that Current makes money off of interchange fees and it also offers a subscription model for those members who want access to credit. It talks to influencers with a significant presence on YouTube, Tiktok and Snapchat that seem aligned with Current’s mission and values. Where there’s a fit, the influencers promote Current’s product and the bank aligns itself with them.
In other recent news, Brex has raised a huge $425 million Series D investment round led by investment giant Tiger Global. The latest capital infusion values Brex at more than $7.4 billion. Brex is a fintech company that offers business credit cards and cash management accounts to companies.