Chip, the automatic saving app offering access to market leading returns, is about to launch its biggest funding round yet to a record number of pre-registrations. The company aims to raise a total of £10 million when it launches its Crowdcube campaign later this week.
The fintech saw 25,000 people register their interest in a matter of days, making it the largest number of pre-registrations in Chip’s history. Chip has an existing 11,000-strong investor community from the previous rounds.
As part of this round, Chip is also participating in the Future Fund, a government initiative, run in partnership with the British Business Bank, that will match any equity funding certain businesses raise in 2020.
This investment will be used to accelerate Chip’s growth, offer more market-leading returns, build on the revenue models, and continue ongoing discussions with VCs from a position of strength. On a more granular level, this means building up Chip’s new suite of returns products, expanding the development team, as well as improving the infrastructure and capacity to give access to more deposits.
Chip’s Chief Executive Officer, Simon Rabin, commented: “We believe the most powerful way for a business to grow is to have thousands of investors advocating something they believe in. Our investor community has helped us get where we are now in more ways than simply investing, so we want to offer them the chance to maintain or improve their stake in our company and share in our success going forward.”
“What the last six months has validated is that there's an enormous demand in the market for a mobile-first digitally native challenger platform for savings and investments. We're very confident we're going to fill that space with the tools to help people save as much as they can and give them seamless access to the best possible returns for short-term saving, long-term savings investments, and eventually pensions as well."
“We have huge ambitions for the future of Chip. We have a way to go, but I very much see our potential to be the next fintech unicorn. There is a vacancy for a category-defining savings app, and we’re going to fill it.”
Over the course of the last 12 months Chip has;