Funds raised will be used for marketing, customer acquisition, strengthening the team and technology
Streak, an educational neo-bank for children, announced on Wednesday to have raised an undisclosed amount in a Seed Round led by angel investment platform Inflection Point Ventures.
Funds raised will be utilized for marketing, customer acquisition, strengthening the team, and making further investments in technology, enabling them to effectively launch Streak and initiate the growth journey as they plan to grow to 2 million users in the next 3 years.
“Neo banking is the fastest-growing vertical within the fintech segment. Streak has identified a fast-growing niche – teenagers, who will be the next wave of customers to begin their credit and banking journey in a few years. We liked this approach of engaging with your customers in the early stage as it leads to long-term association and trust when it comes to banking and financial transactions. As a parent, I can also appreciate some of the unique features they are building in their app to educate our children about financial discipline. India being a young country also means Streak is going after a large target market,” said Ankur Mittal, co-founder, Inflection Point Ventures.
The teenage banking market stands an $8 billion market. The Financial Literacy Rate of adults in India is 24 per cent and ranks at 121 out of 144 in the world. To improve this, Streak believes that the fundamentals of money should be taught early in life, to improve the financial literacy amongst the next generation in India. Streak had conducted a Financial Literacy Championship targeted at school students during the second week of May, receiving organic over 3000 registrations from 130 schools and over 60 cities in 2 weeks. They have also launched a referral-based sign-up program and have seen consistent growth in the waitlist signups for the app. The app will be soon available in both Google Play Store and the iOS App Store.
“Streak is tailor-made for the Indian audience keeping in mind Indian parenting styles and cultural values. We believe that Streak will capture the minds and hearts of parents and children. With IPV’s support and expertise in the edtech and fintech space, we believe that we are positioned to create a significant impact in the ‘ed-fintech’ space,” added Shiv Bidani, co-founder, Streak.
Streak aims to not merely become a payment solution but also enable teenage customers to be financially aware, empowered, and keen to learn more. Parents and teens will work collaboratively on this platform so that parents stay involved in the financial decision-making process, enabling them to shape the child’s financial behavior and financial prudence.