Paris-based Pixpay lands €8 million to become the leading bank for teens
Three months after launching, French startup Pixpay announces a new fundraising of €8 million, which it will use to strengthen its position in France, grow its team and continue supporting teens manage their pocket money.
Founded in 2019, Pixpay helps young people manage their money, while teaching them to gain independence in a fun way. The startup is the brainchild of three French entrepreneurs, Benoit Grassin, Nicolas Klein and Caroline Ménager – the former two being alumni of successful startup MonDocteur.
Twinning together the banking sector and the new digital expectations of teenagers, the app is also based upon their study between parents and children on the obstacles they face when opening a bank account for a minor. Benoît Grassin, co-founder, states: “Adolescents have entered a digital, cashless economy, while 95% of families continue to distribute pocket money in cash, which is anything but safe”. From their research, they found that the two main points that parents and children care about are safety and education, “which really surprised us” recognizes Benoît Grassin.
Pixpay consists of a bank card and an app. Minors get a Mastercard bank card, which they can use to get cash out at an ATM, or to pay for goods in shops. Parents can even still control their teenagers’ finances with unique access to the application. They can “block certain merchants, limit withdrawal amounts or help them save for projects”, says Grassin, or just see expenses incurred by sector (food, clothing, etc.). “All of these services reassure parents, help them understand their children’s expenses and develop certain habits such as saving for a project,” explains Benoît Gassin.
Unlike some neobanks who have chosen to offer a free service, Pixpay operates on the basis of a monthly subscription without commitment of €2.99. It also raised its first round nine months ago, one of €3.1 million led by Global Founders and a group of business angels such as Alexandre Prot (co-founder of Qonto), Jean-Charles Samuelian (co-founder of Alan) and Franck Le Ouay (co-founder of Criteo).
This new round was led by its existing investor, Global Founders, and a new investor, Digital Ventures fund of Bpifrance. With this amount, the startup wants to hire around 20 new employees (sales, customer service and development) by September, strengthen its position in France, and eventually go global, perhaps targeting Western Europe first.
Author: Charlotte Tucker