Fast moving fintech startup Digit closed a $22.5 million Series B today just a year after closing an $11.3 million Series A.
Ribbit Capital led the round with support from all prior investors including General Catalyst. This new round brings their total fundraising to $36 million.
The San Francisco based startup, founded in February 2015, operates in the savings space and has been doubling down on the notion that Americans, especially those in the 18-30 set, do not save enough money. Digit CEO Ethan Bloch explains that “The Millennial generation has a -2% savings rate.” Meanwhile, “Saving is the cornerstone of financial health,” continues Bloch.
Digit connects to a user’s checking account where a user-friendly bot learns from spending patterns. Over time, money is seamlessly transferred into an FDIC insured savings account where it can be called upon later for anything from paying down student loans to travel.
The Digit team consists of 18 employees and is slated to grow in the future. However, Digit is “In a unique place where [it] is not limited by people, there is no huge bottle neck for Digit’s growth,” says Bloch. Rather, in the short run, Digit plans to invest heavily in product development he adds.
Digit currently operates in America, and Bloch says it has grown from processing a few million dollars a month last year to nearly $20 million per month this year.
At the time Digit’s Series B closed, it still had $8 million from its Series A in the bank. Bloch is bullish on its new relationship with Ribbit Capital.
“The biggest reason we took this round was to work with Ribbit, an exclusively fintech investor,” said Bloch. “Ribbit has made some of the biggest bets in fintech including Credit Karma.”
Bloch and the Digit team are far from finished; he said the company still needs to make good on its goal to build out its financial relationship with customers. Bloch says he wants things done in an automated but approachable way.
Digit says it has helped its customers save over $125 million since launch.