U.K.-based fintech GoHenry, which provides pre-paid debit cards and a financial education app for children, this week announced its acquisition of France-based startup Pixpay, a challenger bank for tweens and teens. Terms of the deal were not disclosed.
The deal will afford GoHenry the opportunity to expand into Europe, Dean Brauer, co-founder and president of the company, told Bank Automation News.
“As a pioneer within kids finance in the U.S. and U.K., this acquisition will help us to accelerate growth across Europe, improve our competitive advantage and cement our global leadership position,” Brauer said.
The fintech launched in 2012, expanded into the U.S. in 2018, and explored European expansion in 2020 after a $40 million funding round. The company more than doubled its revenue to $42 million in 2021 during the COVID-19 pandemic. Today, GoHenry counts more than 2 million members globally and has raised a total of $66.2 million over seven funding rounds, according to Crunchbase.
The two companies will continue to operate under separate brands with no change in leadership, headquarters or headcount, according to a release.
“In just two years, Pixpay has established itself as the leader in teen banking in France and Spain with 200,000 members and has plans to expand into Italy and Germany later this year,” Brauer said. “This will be our immediate focus, and we have every confidence in Pixpay’s management team to drive these growth plans forward with all the support they need from GoHenry.”
Founded in Paris in 2019, Pixpay provides a similar money management service that focuses on children aged 10 and up. The fintech has raised $11.1 million over two funding rounds since April 2019, according to Crunchbase.
GoHenry hopes to grow its footprint in Europe as big as the one it has in the U.S., Brauer said.
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