Neobank Current Notches $220 Million At $2.2 Billion Valuation

mobile banking

New York FinTech startup Current raised $220 million in a Series D investment round led by new investor Andreessen Horowitz that triples the company’s valuation to $2.2 billion. The latest capital infusion brings Current’s total funding to more than $400 million.

Additional investments came from existing backers Tiger Global Management, TQ Ventures, Avenir, Sapphire Ventures, Foundation Capital, Wellington Management and EXPA, according to a Tuesday (April 27) press release from Current.

“Getting ahead is more important than ever to this generation,” said Current Founder and CEO Stuart Sopp. “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.”

He said the new capital will help Current expand its offering of products that “make life better” and will also help drive innovation to provide “value, improve financial outcomes and accelerate the growth of our company and member base.”

Current offers mobile banking products that give creators another way to engage with their fans. This latest capital will give Current the opportunity to grow while also working toward the development of integrated products with relevant creators.

The new funding comes on the heels of Current’s increase in membership, which has grown to almost 3 million users, up from 1 million in the summer of 2020. The New York startup also expanded its creator partnerships.

“This new generation of customers doesn’t want to bank in physical branches,” said David George, general partner at Andreessen Horowitz. “We believe there will be a shift in the next 10 years to mobile and consumer-focused banking services powered by innovation in technology.”

He added that Current’s fast-paced growth over the past year has shown that the startup is “at the forefront of this trend” and said it offers a product that is “among the best in the market.”

Current raised $131 million in a Series C funding round in November 2020 that gave the company a $750 valuation. The round was led by Tiger Global Management, with participation by new investors Sapphire Ventures and Avenir and existing investors Foundation Capital, Wellington Management Company and QED Investors.

The rise of challenger banks has shown that there is room enough for all in the digital-first economy, Daniel Eckert, executive vice president and chief product, strategy and development officer at Green Dot, told Karen Webster in a PYMNTS interview.