Founded by serial entrepreneur Adam Dell, Clarity Money makes a personal finance app that aims to help users lower their monthly bills and improve their financial health along the way. Just three months after launch, the company is announcing another $11 million in funding from RRE Ventures and Citi Ventures.
Clarity Money uses machine learning and AI to identify actions its users can take to reduce spending or lower their costs. After downloading the app and linking up checking and credit card accounts, the app provides suggestions for subscriptions they can cancel, bills they can potentially negotiate lower and refinancing options that might be available to them.
The key value prop comes from reducing the friction associated with taking action on one’s finances. That means not only educating users about what’s happening with their money, but also enabling users to unsubscribe from services or take advantage of affiliate offers with a single click.
The company makes money from refinancing or low-interest credit card offers that people choose, but maintaining user trust means ensuring any decisions they make are in the consumer’s best interests. “We want to make sure people trust Clarity Money to present an option that is better for them,” Dell told TechCrunch.
To expand its business, Clarity is announcing another $11 million in Series B financing. That follows a $3.5 million round that the company raised eight months prior, from investors that included RRE, Bessemer Venture Partners, Soros Capital and Maveron Ventures.
Having known Dell for about 25 years and having invested in his previous startup MessageOne, RRE Ventures managing partner Stuart Ellman was an early investor in Clarity. But he decided to double down on Clarity Money after Dell built out his team and brought the product to market. “Adam has the maturity and the gravitas to cut the deals they needed,” Ellman said. “This is a combination of the right product and the right people needed to roll this out.”
Citi Ventures managing director Luis Valdich also talked up the caliber of the team Dell has built. While Citi Ventures typically invests in companies that are a little further along, Valdich said he was impressed by how quickly Clarity Money was growing.
Their investment comes just three months after Clarity launched to the public. In that time, the company has already had more than 100,000 users sign up and link an account in the app. As a result it’s analyzed more than $10 billion in transactions and on average has saved users $300 by helping them cancel subscriptions.