Prograd, a FinTech platform with headquarters in London that aims to educate young people about money and help them achieve individualized objectives, has raised $2.5 million in a seed fundraising round.
Deloitte Ventures spearheaded the investment round along with the participation of Mandeep Singh (founder of marketplace Trouva), Techstars, ZAKA Ventures, and AGAM.
Additionally, the round included fresh and seasoned angel investors, operators, and influential players from the financial services sector.
Prograd now joins the group of finance businesses that serve the expanding millennial and GenZ populations.
The UK-based business disclosed that it would invest money to boost its digital footprint, produce an app, and grow its technology, as well as to increase its marketing and development capabilities.
The August 2022-founded fintech business says it has improved the financial situation of over 15,000 members.
“We are happy to have world-class investors back us in our endeavor to educate the Gen-Z and help people reach their financial goals – without financial jargon and in the most cost-effective way possible,” said Ethan Fraenkel, CEO, and co-founder of Prograd.
Ethan further added, “The lack of personalization and financial literacy, in our opinion, is one of the largest issues facing consumer finance at the moment. Between banks, what customers want to accomplish, and how the two sides interact, there is a significant mismatch.”
“This money is a major milestone at a time when financial help for young people has never been as crucial, given the current cost of living crisis and the bleak financial outlook,” he continued. We wish to support this generation in locating the ideal answers to their problems.
Marco Logiudice and Ethan Fraenkel launched the business in 2022 after failing to find long-term financial solutions to pay for the expense of their master’s degree. They took out high-interest personal loans as a result, and they were required to pay back twice as much.
Prograd is a financial literacy program for Gen-Zers that assists users in setting financial objectives and discovering personalized routes to finance those goals through earning, saving, or borrowing.
The startup pairs customers with products from various suppliers that can help them reach their goals, including side businesses, flexible jobs, savings accounts, credit cards, and vehicle loans, using proprietary algorithms.
The business also signed up for the Techstars London Accelerator, which provides mentorship, growth coaches, and funding to support its expansion.
The lack of financial literacy is a widespread issue with significant societal repercussions, according to Louise Brett, Vice Chairman of Deloitte UK and Head of UK Fintech. Prograd’s solution to this problem benefits customers and the banking sector significantly.
Image Credit: Prograd