WA fintech WeMoney has raised an additional $7 million to invest in product development on the back of significant business growth over the past year.
This latest round of capital raising closed in March and followed the company’s $2m seed raise in October 2020, and was led by existing investors Full Circle VC, Betterlabs, and new investors including VGW founder Laurence Escalante’s family office and US Fund Dream Ventures.
“We’re excited to back Dan and the whole team at WeMoney, who’re solving a very difficult problem in the financial services space. WeMoney has had phenomenal growth in the last year, and we’re thrilled to be on the journey,” said Laurence.
WeMoney CEO and founder Dan Jovevski said this latest injection of capital signalled a strong endorsement from investors in the company’s potential and will enable the business to expand the WeMoney product and to significantly invest in streamlining the platform to assist Gen Z and Millennials to seamlessly unlock a deeper understanding of their finances.
In the 18 months since launching, the WeMoney app now has over 285,000 downloads, and the business continues to expand, with member numbers and revenue growing more than 30%, month on month.
Recent research conducted by WeMoney found that over 75% of its members were overpaying on their personal loans and mortgages. Dan says in the current economic climate getting the best deal on loan products was essential.
“We found in research late last year that 6 in 10 Australians worry about debt, and with interest rates heading north, and rising costs of living, many young Aussies are looking for ways to ease or eliminate their debt burden completely. Making sure our members get the best possible rates on their loans continues to be our mission at WeMoney”, he said.
In February this year, WeMoney was accredited for Open Banking in Australia as an Authorised Data Recipient under Australia’s Consumer Data Right (CDR). This allows members to connect their bank accounts quickly and securely from accredited data providers, such as banks, to allow for a deeper understanding of their finances.
Since its inception in October 2020, the financial wellness platform has formed partnerships with 52 different companies including CoinSpot, OurMoneyMarket and Athena Home Loans.
WeMoney entered the New Zealand market in December 2021 in response to growing demand from the New Zealand diaspora living in Australia and aligns with its longer-term goal to enter other global markets, including North America.