PE Tech Report


Like this article?

Sign up to our free newsletter

Edison Partners leads USD42m growth investment in MoneyLion

Edison Partners, a growth equity investment firm, has led a new USD42 million growth investment in digital personal finance platform MoneyLion. The company will use the funds to expand its product line. 

Edison invested USD15 million of the USD42 million follow-on investment. In total, Edison has now invested USD27 million in MoneyLion and the company has raised over USD67 million in equity financing. MoneyLion has experienced nearly 100 percent compound annual growth since Edison’s initial investment in November 2016.

Financially underserved consumers spend an unthinkable USD173 billion annually to manage their day-to-day financial lives, including USD97 billion on short-term credit products, according to the Center for Financial Services Innovation (CFSI). MoneyLion provides an AI-powered consumer finance platform that broadens consumer access to low-interest credit, automated savings and affordable investment opportunities. More than 1.5 million consumers now turn to MoneyLion to manage unexpected expenses and achieve their financial goals.

“Many traditional financial institutions and fintech platforms cater to super-prime, mass affluent consumers, which is only a small part of the US market. In fact, more than 75 per cent of America’s consumers remain underserved by financial services providers,” says Chris Sugden, Managing Partner at Edison Partners who led the investment. “MoneyLion brings consumer credit and savings to the financial middle class. By delivering both a liability and wealth management digital solution on the same platform, MoneyLion brings a complete financial toolkit for consumers who earn less than USD100,000.”

With MoneyLion’s free mobile app, customers can monitor their credit, track bank balances, and receive personalised advice based on their spending patterns and credit profile. The company has provided 250,000 personal loans. On 6 November, MoneyLion announced the expansion of its product set with MoneyLion Plus, a subscription offering that uniquely bundles automated savings, fully managed investing and low-cost credit. 

“Edison Partners and the Edison Director Network have helped us build a superior, profitable platform that simultaneously tackles both sides of the balance sheet for our customers,” says Diwakar Choubey, CEO and co-founder of MoneyLion. “We’re excited by today’s milestone and the continued support of our investors and customers for our platform.”

Sugden adds: “Everyone at Edison and members of the Edison Director Network who has spent time with MoneyLion is impressed. They’ve shown strong loan growth and high customer adoption, and have made smart investments across product, user acquisition, risk selection and customer engagement to manage their growth. They are a game-changer in the digital lending, investing and financial advisory space.”

Like this article? Sign up to our free newsletter