London-based neobank Kroo has raised £26 million ($33 million) in a Series B funding round, despite the pace of fintech funding slowing down after the highs of 2021.
Along with the typical neobank features, Kroo believes it differentiates itself from competitors by offering "socially conscious" initiatives such as a customer tree-planting referral scheme and by pledging a portion of its profits to social causes. The bank currently has 23,000 users of its prepaid card.
"The money raised will go a long way in supporting the launch to market of our current account, the development of our lending proposition and the scaling up of the company," CEO Andrea de Gottardo said in a statement on Tuesday. "We are very excited to offer to the UK customers a new digital bank that will have a positive impact on their lives."
According to the release, the company will seek Series C funding next year. The news follows fellow UK-based neobank Starling's £130 million raise last month.
The statement didn't give details on who has invested in the round, or what valuation it places on the company. A spokesperson for Kroo didn't immediately respond to a request for further information.