GoHenry, the prepaid debit card and financial education app for kids aged 6-18, has acquired French fintech Pixpay in a deal that will see the financial education pioneer expand into Europe for the first time.
10 years after it launched in the UK creating a new category in financial services, this new deal will enable GoHenry to rapidly expand its two million plus UK and US member base and accelerate growth across Europe as the company seeks to deliver on its mission to make every kid smart with money.
Having more than doubled its revenue during the pandemic to $42million in 2021, the acquisition follows a successful $40million fundraising in 2020 to accelerate its leadership position in the UK and expansion into the US. Investors include French entrepreneurial growth equity investment fund Revaia, US growth-equity fund Edison Partners, Citi Ventures, and Muse Capital.
In just two years, Pixpay has established itself as the leader in teen banking in France and Spain, with nearly 200,000 members. Its opening in Spain in November 2021, less than two years after its commercial launch in France, embodies its ambition to become a key player in Europe. Pixpay has plans to expand into Italy and Germany later this year. To support its launch, Pixpay has raised more than €11million since April 2019 from the investment fund Global Founders Capital and BPIFrance via its Digital Venture division.
Alex Zivoder, CEO at GoHenry, comments: “10 years ago we saw an opportunity to give young people access to the digital economy. Since then we’ve looked to transform financial education for kids, teens and their parents through our groundbreaking financial education app and debit card to help children across the world gain confidence with money and finances.
“Pixpay is the most developed player in Europe and we’re excited to combine our expertise in financial education to accelerate not only GoHenry’s growth but to accelerate the financial fitness of even more kids and teens globally. This deal marks a significant chapter for the future of financial education.”
Benoit Grassin, CEO at Pixpay, says: “We are delighted to be joining the GoHenry Group as we prepare to accelerate Pixpay’s expansion across Europe. GoHenry’s experience and heritage will only serve to strengthen the already strong proposition offered by Pixpay. We look forward to building a strong, long-term relationship with GoHenry and we are excited about what the future holds.”
GoHenry and Pixpay will continue to operate under their own brands with no change in leadership, headquarters or headcount. The acquisition will instead allow both companies to accelerate their growth by executing synergies in knowledge and resource that will free up funds to reinvest in the financial education of kids and teens.
As part of its commitment to financial education, GoHenry recently launched its first Junior ISA, introduced in-app gamified money lessons, ‘Money Missions’, and continued to champion the importance of financial literacy through its membership of The Centre for Financial Capability. Alongside accountancy firm Wilson Wright, the company also commissioned CBI Economics analysis in March this year calling on the UK Government to work with industry to prioritise financial education from a young age.