Ffrees raises third funding round worth £2m
Family current account provider to build mobile app and grow offering following investment
A fintech start-up that offers a digital current account claiming to help families “save as they spend” has closed a £2m funding round from a syndicate of public and private investors, marking its third major investment since inception.
Sheffield-based Ffrees, founded in 2012 by Alex Letts, offers a current account targeted at UK families which rewards users with automatic savings each time they spend with one of the firm’s partnered retailers.
Opening an account is free regardless of social or financial status, and Ffrees has amassed around 35,000 UK customers to date, with around 1,000 new ones joining each week.
Customers can also ‘ring-fence’ funds within accounts, which Ffrees said can help them manage their money more efficiently.
The latest funding round comes from a syndicate of high-profile investors including Finance Yorkshire, innovation charity Nesta, and the government-backed Technology Innovation Fund.
It marks Ffrees’ third funding round, following another £2m investment which it completed in December 2013.
Ffrees said the money would be used to expand the capabilities of the online platform, introduce a mobile app, and invest in customer interaction offerings.
Ffrees founder Alex Letts said: “The real estate model of retail banking is rapidly collapsing. Customers require customisable data-driven services, rather than inflexible analogue products. They want to access their money at will from connected devices whenever and wherever. And they want to pay a fair price transparently to a trusted provider.
“That is the model that we at Ffrees are building and this new investment helps to accelerate the rapid progress already being made.”