Investments

Automated Savings Startup Digit Raises $11.3M Led by General Catalyst and Others

Image Source: Digit

Image Source: Digit

California-based automated savings startup, Digit that helps consumers to save money by connecting to their bank accounts, has raised $11.3 million in Series A round, the round was led by General Catalyst, with participation from existing investors Baseline Ventures and Google Ventures, as well as former Visa President Hans Morris. The latest funding brings the total capital of the firm to date is $13.8 million. In December 2014, the firm had received $2.5 million in seed funding.

The new funding will be used to expanding its services and features to offer new options to users. Three months back, Digit officially opened up to the public and allow anyone to sign up. Since then, the company has increased its user base by 10x and its saving under management up 5x.

Periodically Digit transfers some money from user’s checking account to their Digit savings. Its website has a dashboard with user’s current savings balance and total amount saved, as well as list of recent withdrawals from their checking account. Communications happen with users only through text. Users send SMS messages to view their balance, or recent changes in their checking balance, and to save or withdraw more money.

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The startup aims to automate all users’ financial needs, whether it be managing a savings account, paying recurring bills, lowering a user’s debt, or putting money away for retirement. Also, it is having plans to integrate its way into various different parts of a consumer’s financial life to serve their financial services needs.

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