Other backers of Stash include T. Rowe Price Associates, Inc. as well as Breyer Capital, Goodwater Capital, Greenspring Associates, Union Square Ventures, and more, according to a press release.
The reason for the investment, according to LendingTree CEO Doug Lebda, is that the company wants to break more into the asset side of a consumer’s balance sheet, which Stash is a pioneer in, with its focus on education and savings advice.
Lebda said he thought the two companies were a match with “countless synergies” around their business models.
LendingTree chief financial officer J.D. Moriarty said the company prided itself on having made nine acquisitions since 2016 that had put the company in a good place to expand into the asset side of banking. Moriarty said the two companies would be able to help “millions” of customers.
Stash, formed in 2015, has built a business on helping people get in control of their bank accounts, avoid fees and meet goal markers in finance. The company, according to the press release, works with subscriptions that cover educational subjects like personal investment accounts, traditional and Roth IRAs, custodial investment accounts, credit and debit cards and other questions relating to bank accounts and finance.
The press release says Stash has given 9.5 million fractional stock shares as part of its Stock-Back rewards program, which allows customers to invest via everyday purchases. The program allows users to automatically earn small shares of stocks just by using their Stash debit cards. By doing so, and being able to see their progress, users can choose to invest in brands they interact with often.
Stash CEO and co-founder Brandon Krieg said the help from LendingTree, with that company’s focus on financial solutions, would only help Stash’s focus on education and new tools to help customers navigate the finance world.