GoHenry raises $55m after its losses balloon 20-fold
Summary
GoHenry, the neobank for children aged six and up, has tapped existing investors Edison Partners and Revaia for $55m in a Series B funding round, after its losses shot up by almost 2000% in 2021. Italian payments giant Nexi has also taken a stake in the neobank, joining as an investor in the latest round.GoHenry benefitted somewhat from the pandemic cashless boom, increasing its revenue 55% in 2021 to \xa330.5m, up from \xa319.7m in 2020. Its kept PixPay as the name for its European brand, and now plans to draw on new Italian investor Nexis expertise to launch it in Italy before the end of the year.Nexi has its own payments app catering to Gen Z and millennials, YAP, which currently has around 1m users. Edoardo Giorgetti, head of YAP at Nexi Group, is joining GoHenrys board after the raise.We both believe in the transition to a cashless society and understood the way to do this is by approaching the next generation with digital financial products, Zivoder tells Sifted.Well decide what exactly the YAP-GoHenry partnership looks like next year.GoHenry raised a $40m Series A in December 2020 to expand in the US and UK. And now we take that knowledge back with us to grow faster in Europe.Im not saying that we wont spend money in the UK or the US, but right now for us it makes most sense to double down on Europe as our third pillar of growth.Beyond Italy, Germany and the Nordics are potentially on the cards further down the line.Germany has always been the most difficult market for any of these B2C [business to consumer] brands to get into, Zivoder says.