Stash Valued at $800 Million as LendingTree, T. Rowe Invest
(Bloomberg) -- New York-based investing startup Stash Investments is raising $112 million in a new round of funding led by LendingTree Inc. The round will value the company at more than $800 million, according to people familiar with the matter.
Global asset management giant T. Rowe Price Group Inc. is also coming in as a new investor, while existing backers Breyer Capital, Goodwater Capital, Greenspring Associates Inc. and Union Square Ventures increased their contributions, according to a statement Wednesday.
“The money is going to be mostly used to support customer growth and building up brand awareness, especially during this really scary time with Covid-19,” Stash co-founder and Chief Executive Officer Brandon Krieg said in an interview. “We want to help Americans achieve financial freedom.”
Stash, co-founded by Krieg and former colleague Ed Robinson, aims to help younger, less affluent Americans with banking, as well as investment advice and services. Krieg said weekly customer deposits across banking and investing in March jumped 50% from February, as Americans battled to survive unprecedented job losses stemming from the global coronavirus pandemic and stay-at-home orders.
Stash plans to more than double its customer base to 10 million within two years from more than 4.5 million currently, he said, adding that the company would become profitable “in the not-too-distant future.”
The Stash investment is the first of its kind for LendingTree, an online marketplace for personal finance products such as credit cards and insurance. The Charlotte, North Carolina-based company put in $80 million of the total invested, according to a separate statement.
Stash was advised by Goldman Sachs Group Inc., with WilmerHale providing legal advice. LendingTree was advised by Bank of America Corp.
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