Chip raises £2.5 million

London-based Chip Financial, the fintech startup helping people save money has turned to crowdfunding once again, raising around £2.5 million with 4,240 people investing.

Founded in 2016 and led by Simon Rabin, Chip provides an app that automatically saves up money for users. The app, available on iOS and Android, uses AI to decide what to save, sends users a notification saying how much money they’re about to put aside, and then automatically transfers it into the Chip account.

The funds will be used to accelerate Chip’s growth, including the launch of an FSCS protected savings account through a partner bank, as well as to deliver new features to accommodate the changing behaviors of their savers since the beginning of the pandemic. Chip’s user base has increased over 40% in the first three months of 2020, with the average amount put aside by savers each month increasing by 13%.

“We’ve seen unprecedented growth during these difficult times, which demonstrates that Chip is incredibly useful for putting money aside for safety net and emergency funds. Off the back of this growth, we wanted to share the opportunity with our investor community, and have been overwhelmed by their response. Following on from the FCA authorisation, our next big milestone will be the launch of an FSCS protected savings account, giving our users an even more efficient tool to save up for their goals – whatever they might be.” – Simon Rabin, CEO and founder of Chip.