Jan 04, 2018
Accelerates innovation and adoption for all-in-one digital lending, robo-investing and financial advice platform already used by more than 1.5 million U.S. consumers
PRINCETON, NJ – JANUARY 4, 2018 – Edison Partners, the growth equity investment firm, today announced leading a new $42 million growth investment in digital personal finance platform MoneyLion. The company will use the funds to expand its product line.
Edison invested $15 million of the $42 million follow-on investment. In total, Edison has now invested $27 million in MoneyLion and the company has raised over $67 million in equity financing. MoneyLion has experienced nearly 100 percent compound annual growth since Edison’s initial investment in November 2016.
Financially underserved consumers spend an unthinkable $173 billion annually to manage their day-to-day financial lives, including $97 billion on short-term credit products, according to the Center for Financial Services Innovation (CFSI). MoneyLion provides an AI-powered consumer finance platform that broadens consumer access to low-interest credit, automated savings and affordable investment opportunities. More than 1.5 million consumers now turn to MoneyLion to manage unexpected expenses and achieve their financial goals.
“Many traditional financial institutions and fintech platforms cater to super-prime, mass affluent consumers, which is only a small part of the U.S. market. In fact, more than 75 percent of America’s consumers remain underserved by financial services providers,” says Chris Sugden, Managing Partner at Edison Partners who led the investment. “MoneyLion brings consumer credit and savings to the financial middle class. By delivering both a liability and wealth management digital solution on the same platform, MoneyLion brings a complete financial toolkit for consumers who earn less than $100,000.”
With MoneyLion’s free mobile app, customers can monitor their credit, track bank balances, and receive personalized advice based on their spending patterns and credit profile. The company has provided 250,000 personal loans. On November 6th, MoneyLion announced the expansion of its product set with MoneyLion Plus, a subscription offering that uniquely bundles automated savings, fully managed investing and low-cost credit.
“Edison Partners and the Edison Director Network have helped us build a superior, profitable platform that simultaneously tackles both sides of the balance sheet for our customers,” said Diwakar Choubey, CEO and co-founder of MoneyLion. “We’re excited by today’s milestone and the continued support of our investors and customers for our platform.”
Sugden adds: “Everyone at Edison and members of the Edison Director Network who have spent time with MoneyLion are impressed. They’ve shown strong loan growth and high customer adoption, and have made smart investments across product, user acquisition, risk selection and customer engagement to manage their growth. They are a game-changer in the digital lending, investing and financial advisory space.”
Edison Partners has financed and guided more than 200 private companies, including 40 financial technology companies. Noteworthy fintech exits include EdgeTrade, FolioDynamix, GAIN Capital, Liberty Tax, OptionsCity and Princeton Financial. Current growth equity investments include: Axial, BFS Capital, Billtrust, Clearpool Group, ComplySci, GAN Integrity, Predata, Scivantage, Solovis and TraderTools. The latest growth equity investment in MoneyLion is the 5th fintech investment from Edison Partners’ fund VIII.
About MoneyLion
MoneyLion is a leading mobile finance platform that empowers consumers to take control of their financial lives through better products for borrowing, saving, and investing. Founded in 2013 by a team of leading technologists and financiers, MoneyLion uses superior analytics and machine learning-based technology to gain a 360-degree view of its users’ personal finances, enabling uniquely personalized advice and underwriting. With its built-in system of rewards, points, and incentives, MoneyLion encourages good financial behavior and better financial outcomes. MoneyLion is headquartered in New York with offices in San Francisco, Salt Lake City and Kuala Lumpur, Malaysia. For more information, visit www.moneylion.com or download the app here.
About Edison Partners
For more than 30 years, Edison Partners has been helping CEOs and their executive teams navigate the entrepreneurial journey and build successful companies. Through the unique combination of growth capital and the Edison Edge platform, consisting of operating leverage, the Edison Director Network, and executive education, Edison employs a holistic approach to accelerating growth and creating value for businesses ($5 to $20 million in revenue) in financial, healthcare, enterprise and marketing technology sectors. Edison investment objectives also include: buyouts, recapitalizations, spinouts and secondary stock purchases.
Edison’s active portfolio has created aggregate market value exceeding $10 billion. Its long-tenured team based in Princeton, NJ manages more than $1 billion in assets throughout the eastern United States.
