Acorns buys U.K. kid-focused fintech GoHenry
Savings and investment startup Acorns is going international with the acquisition of financial education startup GoHenry.
Why it matters: The deal gives Acorns access to new markets and could expand its product capabilities in the U.S.
Driving the news: In an equity deal, Acorns acquired London-based kid-focused fintech GoHenry and its E.U. arm Pixpay. Terms were not disclosed.
Context: Irvine, Calif.-based Acorns was founded in 2012 as a savings and investment app that automates micro-investments by rounding up spare change from users' everyday purchases.
- Over time the company added features like banking and retirement savings and got into kid-focused investment accounts in 2020.
Meanwhile, GoHenry was founded in 2012 and is focused on money management and financial education for kids and teens.
- It offers a pre-paid debit card with parental controls to help young people learn healthy spending habits.
- Last summer it acquired Pixpay, another kid-focused financial education app based in France that also has operations in Spain and Italy.
What they're saying: "We met the GoHenry team about two years ago, and we started having conversations about this idea of one company to deliver financial wellness for the whole family, serving kids, teens and adults — and doing it on a global basis," Acorns CEO Noah Kerner tells Axios.
- "The more we spoke, the more we realized that we're trying to do the same thing. Our products and services are founded in the belief that financial education is the bedrock of helping people be smart with their money and change their life chances," GoHenry co-founder Louise Hill says.
Between the lines: Both companies are well capitalized: Acorns has raised more than $600 million since inception, including a $300 million funding round announced last March.
- Meanwhile, GoHenry raised $55 million in October, bringing its total funding to more than $125 million.
- The companies claim to have 6 million subscribers between them.
- "Between us, we're across five countries," Hill says. "If we come together, we can expand that reach out to more customers and embed financial education and financial wellness through all lights ages and stages."
Of note: In the U.S., GoHenry will rebrand as GoHenry by Acorns.
- In the U.K. and Europe, GoHenry and Pixpay will continue to operate under their own brands.
Editor's note: This story has been corrected to note that Acorns was founded in 2012, not 2008.