Digital Banking Startup Oxygen Secures $17 Million Series A

Digital banking platform Oxygen has closed a $17 million Series A funding round that included Runa Capital, S7V, 1984.vc, EFG Hermes, Rucker Park and Inventures, the Silicon Valley startup announced in a Monday (Jan. 4) press release.

The round also included investments by celebrity and FinTech leaders such as Frank Strauss, global CEO of the Private & Commercial Bank for Deutsche Bank AG; William Hockey, co-founder of Plaid; Ankur Nagpal, founder and CEO of Teachable; Peter Treadway; and NFL wide receiver Larry Fitzgerald.

“This investment not only validates what we’ve built but also enables us to continue pursuing our vision of building financial tools that integrate seamlessly with the digital world of today and delight our customers,” said Oxygen CEO Hussein Ahmed.

“We founded Oxygen because we wanted to provide financial services in the same way people interact with technology in their everyday lives. We didn’t see that and believe this led to exclusion for many. This is an important milestone, but we are just getting started,” Ahmed said.

Founded in January 2020, Oxygen offers small businesses and individuals flexible finance options with no minimum balance or monthly fees. Accounts are FDIC insured through a partnership with The Bancorp Bank, and customers get a Visa debit card with cashback rewards.

The banking startup has over 125,000 accounts and has seen revenue accelerate by more than 969 times. The platform is the first U.S. neobank to offer accounts to both individuals and small businesses. It provides tools for LLC creation, expense management, and more, all from the Oxygen app.

“Oxygen is the premier banking platform for today’s digital consumer,” said Andre Bliznyuk, general partner, Runa Capital. “Their all-in-one banking app serves both consumers and businesses, ranging from tech-savvy consumers who are just looking for a better banking experience to burgeoning entrepreneurs and small businesses looking for digital banking solutions that meet their strict requirements. It’s banking done better.”

Oxygen was part of the Visa Fast Track program earlier in 2020, while also developing a banking brand.

“When I witnessed the customer engagement around the Oxygen platform, I knew immediately they were offering something truly different for consumers and small businesses,” said Deutsche Bank’s Strauss, who will act as strategic advisor. “What’s more, I’ve been struck not only by the vision but also the ability of the management team to execute quickly.”

In May, Oxygen introduced a new banking solution just for the gig economy that is tailored to freelancers and independent contractors.