(Reuters) – SoftBank Vision Fund 2 led a $150 million late-stage funding round in banking and investment app M1 Finance, lifting its valuation to $1.45 billion, the Chicago-based company said on Wednesday.
Founded in 2015, M1 manages over $4.5 billion in assets and pitches itself as an all-in-one money management platform that allows customers to invest, borrow and spend in one place.
Consumer-facing investment apps like M1 have seen an uptick in demand since last year as scores of stuck-at-home customers took to investing. Online brokerage Robinhood Markets Inc, which has filed for a U.S. stock market listing, revealed a frenetic pace of growth in 2020.
M1 has “experienced massive growth in the past year,” Founder and Chief Executive Officer Brian Barnes said in a statement, and it plans to use the fresh capital to fund new products and features, hire more employees and improve customer service.
The latest round took M1’s total funding above $300 million and saw participation from existing investors as well. The company raised capital through three consecutive rounds over the past year.
M1 counts technology-focused investment firm Coatue and Left Lane Capital among its investors.
(Reporting by Sohini Podder and Niket Nishant in Bengaluru and Jane Lanhee Lee in San Francisco; Editing by Devika Syamnath)
