U.S.-based challenger bank Current, which has grown to nearly 3 million users, announced this morning that it has raised a $220 million round of Series D funding, led by new investor Andreessen Horowitz (a16z). The funding swiftly follows Current’s $131 million Series C at the end of last year, at which point the company had doubled its user base over just six months to over 2 million users.
As a result of the new road, the fintech company has roughly tripled its valuation to $2.2 billion in five months. Other participants in the round include returning investors Tiger Global Management, TQ Ventures (the fund managed by media executive Scooter Braun), Avenir, Sapphire Ventures, Foundation Capital, Wellington Management, and EXPA. David George, who led the round with a16z, will become a Current board member.
Current began as a teen debit card controlled by parents but later expanded to offer personal checking accounts powered by the same underlying banking technology. Like a range of modern-day “neobanks,” or digital banks, the Current app provides a baseline of standard features like free overdrafts, no minimum balance requirements, faster direct deposits, instant spending notifications, banking insights, accessible ATMs, check deposits
using your phone’s camera and more. Last year, it launched a points rewards program to better differentiate its service from the growing number of competitors and became one of the first banks to transfer the early round of stimulus payments during the pandemic. These days, Current is partnering with creators, like the recently announced MrBeast (aka Jimmy Donaldson), who said last week on his YouTube channel that he will personally send $1 to every 100,000 people who sign up using his Creator code. MrBeast is also an investor.