Through a reported funding round, digital wealth management startup Acorns Grow Inc. is said to be seeking over $100 million in funding. Such a round could potentially provide the company with a valuation of more than $700 million, Bloomberg reported.
The amount of the round could change, people familiar with the matter told Bloomberg, and the round is led by a big investor. While the people did not disclose the backer’s identity, existing investors include companies such as PayPal Holdings Inc. and BlackRock Inc., along with well-known stars like Kevin Durant and Ashton Kutcher.
The company, which is based in California, has assets under management of over $1 billion, and the company’s app counts four million sign-ups. As it stands, CB Insights says the company has notched $159 million in funding. (The reported round was not included in their estimate.)
In June, it was reported that Acorns generated 10,000 pre-orders for its new rewards debit card. The card offers perks like investments into Acorns accounts when users make purchases with the card at select retailers. At first, 100,000 cards were set to be available, and cards were to be mailed by Nov. 1, it was reported at the time.
Acorns’ micro-investment and retirement account services are also built into the card, which will enable customers to get real-time round-ups on all purchases automatically deposited into their Acorns accounts. Customers of Acorns' services will also be able to get up to 10 percent of each of their local merchant purchases deposited into their accounts.
The card also offers some benefits, such as mobile check deposit, digital direct deposit and check sending, as well as free bank-to-bank transfers and unlimited free or fee-reimbursed withdrawals from ATMs around the country. In addition to those perks, Acorns Chief Executive Noah Kerner said particular care was paid to the card’s design.
Kerner said at the time, according to reports, “The design is important to us, because this card is a badge of honor. By choosing it, people are choosing to save, invest and earn while they spend.”