The digital personal finance startup MoneyLion has raised $42 million in Series B funding on its quest to make money more approachable for the financial middle class.
The New York startup, which was founded in 2013, provides a direct-to-consumer app that provides advice to users after they link in their bank data like many other apps do. Unlike most personal financial services apps, MoneyLion also offers loans and has provided more than 250,000 to date. It also offers users credit monitoring and rewards for doing tasks like setting up automatic savings.
“We’re bringing private banking-like services to the middle class that address their toughest financial challenges, like fluctuating monthly income and expenses, access to affordable credit, and improving savings,” Diwakar Choubey, CEO and co-founder of MoneyLion, said in a press release.
The company says it has more than 1.5 million users.
In addition to making money on loans, MoneyLion also sells membership packages that includes additional perks, such as $1 daily cash back if someone logs into the mobile app and more rewards based on savings. The membership fee is $29 a month.
The latest investment round was led by Edison Partners. Greenspring Associates and Danhua Capital also participated in the round. The startup said it plans to use the funds to expand its product line and invest in new technology. Existing investors include FinTech Collective and Grupo SURA. All told, MoneyLion has raised $67 million in equity financing.