M1 Finance raises $45m for its next-gen super app
M1 Finance has announced the successful closing of its Series C funding round, which raised US$45m for its personal finance platform.
The investment, led by Left Lane Capital, brings M1 Finance’s total investment to approximately $100m and follows swiftly after its $33m Series B round in June 2020.
Super apps (explored more generally here) are becoming an increasingly disruptive force in modern fintech; the company’s own allows users investing, borrowing and banking products on a single, easy-to-use service.
Brian Barnes, Founder and CEO of M1 Finance, is confident that the growing popularity of super apps is an essential component of modern finance management.
“The perfect finance account will manage all of a person’s finances and optimize them according to the individual’s unique wants and needs. M1’s platform is furthest along in making this vision a reality and this fundraise lets us move faster towards that ideal.”
At the forefront of personal finance
Last month, we held a Q&A session with Barnes in which he outlined the issues that M1 Finance is addressing:
“Before M1, people were forced to use a mix of brokers, money apps, and banks to manage all aspects of their finances. Not only is that time consuming, but it can also lead to worse financial outcomes overall.
“Our next new innovation [...] will be focused on making it even easier for people to put their money to work the right way. We will let our customers set up rules for how each invested dollar should be used, helping build up savings, pay down debt, and get fully invested.
“The idea is to automate good financial habits. No other fintech, legacy bank, or broker has come close to this, so we are incredibly excited.”
As super apps continue to build an equivalent level of interest in the West as in Asia (for instance, WeChat and Alipay), M1 Finance is a notable, US-based enterprise that could spark further growth in the sector.
“Our confidence in M1, its team, and its product, have only grown in our work together,” commented Dan Ahrens, Partner at Left Lane Capital.
“The product’s combination of automation and client empowerment is unique in the market today. The M1 team pioneered no-fee investing and fractional shares, and we’re confident they’ll continue to be at the forefront of personal finance.”
