Acorns, a popular micro-investing app that encourages saving and investing, has announced its acquisition of child and teen-focused digital banking startup GoHenry. The move is part of Acorns' plan to expand into the European market, and the acquisition of GoHenry will provide the company with the capability to offer financial services to younger customers.
The acquisition will allow Acorns to offer its savings and investment products to families with children, while GoHenry's digital banking technology will enable Acorns to provide financial products tailored to the needs of young people. The move is expected to help Acorns reach a wider audience in Europe and increase its market share in the micro-investing space.
Acorns was founded in 2012 and has since grown to become a leading platform for micro-investing, with over 9 million users. The app allows users to invest their spare change in a diversified portfolio of ETFs, making it easy for anyone to start investing. Acorns has also launched a checking account that offers no-fee overdraft protection and other features designed to help users save and manage their money.
GoHenry, on the other hand, is a digital banking platform that provides financial tools for children and their parents. The platform allows parents to set spending limits and monitor their children's spending, while also teaching children about saving and budgeting. GoHenry has over 1 million customers in the UK, France, and Italy.
The acquisition of GoHenry will enable Acorns to offer its services to a younger demographic, while also expanding its reach in Europe. The move is part of Acorns' strategy to become a one-stop-shop for financial services, offering savings, investing, and banking products to its users.
Acorns co-founder and CEO Noah Kerner said in a statement: "We're thrilled to welcome GoHenry to the Acorns family. With their strong focus on financial education for children and their innovative approach to digital banking, GoHenry is the perfect partner for Acorns as we expand into Europe."
The financial terms of the acquisition were not disclosed, but the deal is expected to close in the coming months. GoHenry's team of approximately 100 employees will join Acorns, and the company will continue to operate under the GoHenry brand.
Acorns' move into the European market comes at a time when the micro-investing space is becoming increasingly crowded. Competitors like Robinhood and Stash have gained popularity in the US, while European companies like Moneybox and Nutmeg have also made inroads in the market. Acorns' acquisition of GoHenry is a strategic move to differentiate itself from its competitors and gain a foothold in the European market.
In addition to the acquisition of GoHenry, Acorns has also recently launched a new feature that allows users to invest in Bitcoin. The move is part of Acorns' efforts to expand its investment offerings and appeal to younger users who are interested in cryptocurrencies.
Acorns has also been expanding its business through partnerships with other companies. In March 2023, the company announced a strategic partnership with PayPal that will enable PayPal users to link their accounts with Acorns and use the platform to save and invest their money.
In conclusion, Acorns' acquisition of GoHenry is a strategic move to expand its reach in the European market and offer financial products tailored to younger customers. The move is part of Acorns' broader strategy to become a one-stop-shop for financial services, offering savings, investing, and banking products to its users. With the micro-investing space becoming increasingly crowded, Acorns' acquisition of GoHenry is a differentiating move that will help the company stand out from its competitors.
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