The Atlanta-based FinTech Greenlight pitches parents on kid-friendly bank accounts and is launching a credit card. The Greenlight-branded Mastercard offers up to 3% unlimited money back on all purchases and allows parents to mechanically invest those cash rewards in stocks and ETFs to pay for family-related expenses, co-founder and CEO Tim Sheehan told TechCrunch.
Greenlight recorded more than $100 million in annual recurring revenue (ARR) in 2021, and crossed the 5 million mark in terms of the number of parents and children on the app, Sheehan said. It raised $260 million in a Series D funding round led by a16z in April last year, which nearly doubled its prior valuation to $2.3 billion.
“Parents must opt into the automatic investment feature, and if they don’t want their funds invested in the ETFs Greenlight pre-determines are relatively safe, they can also choose to invest that cash in other ways through Greenlight’s investment app or opt for the cash to go directly to their bank account,” says CEO Tim Sheehan.
The credit card helps parents to save for their children’s education is meditated withinside the manner it’s being marketed. However, its capabilities are further than every other credit card that gives coins again to users. Its differentiator, Sheehan stated, is in its cap potential to permit dad and mom to make investments the ones rewards routinely in place of having to achieve this manually if they select that option.