Fintech & Ecommerce

Acorns Acquires Kids Money Management App GoHenry

Being in business for over ten years, GoHenry provides a pre-paid debit card and financial education app for kids aged 6-18. The acquisition gives the combined Acorns company nearly six million subscribers

Acorns Acquires Kids Money Management App GoHenry

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Popular savings an investment app Acorns has acquired British kids’ money management oriented fintech GoHenry. Financial terms of the deal were not disclosed but it is known that it increases the company’s customer base by about two million users. As of 2022, Acorns had more than 4.6 million paid subscribers.

Acorns itself has already gotten a proposition aimed at youngest consumers. Acorns Early investment account rounds up parents’ transactions to the nearest dollar and invests the spare change. This way, children get a flexible custodial account where funds are stored and protected until they reach the legal age of majority.

The addition of GoHenry offering to Acorns product portfolio is valuable in many ways. Firstly, the acquisition strengthens the company’s focus on financial wellness since early age. GoHenry’s Visa debit card and app with flexible parental controls and great budgeting tools are among the top banking products for kids on the market. Besides, its bank cards are customisable with unique designs. Customers can even choose a new biodegradable Eco Card to reflect their sustainability efforts.

Secondly, in terms of valuation, it is one of the biggest M&A deals registered between two fintech startups lately. It gives Acorns’ new funding opportunities as well, since GoHenry’s investors include Edison Partners, Revaia, Citi Ventures, Muse Capital and Nexi.

Furthermore, the deal paves the way for international expansion, as GoHenry caters to kid customers in the UK, France, Italy and Spain after acquiring its French peer Pixpay in July 2022.

In the US, GoHenry will continue to operate as GoHenry by Acorns. In the UK & Europe, both GoHenry and PixPay will continue to operate under their own brands.

Nina Bobro

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https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.