PriyaPatelFintech savings app Kaldi has raised £472,875 ($634,774) from 140 investors via crowdfunding platform Crowdcube. Kaldi is developing a “save while you shop” app that automatically invests cashback from 150 high street brands into users’ choice of low-cost equity index funds at checkout. The company aims to raise a total of £635,000 through the current campaign. Kaldi reports equity of 7.21%, a pre-money valuation of £8.17m and a share price of £25. The initiative is backed by the British Business Bank, SFC Capital and Woodside Holdings, which are also early investors in Singapore-based savings app HugoSave.
An estimated 28% of UK retail sales come from 150 major retailers. The Kaldi app connects retailers to consumers’ life goals and targets young savers who feel priced out of the UK housing market. So far, Kaldi has raised £1.71m in funds, and it has received a financial support package from Mastercard.
The company estimates it has an annual UK serviceable obtainable market (SOM) revenues of £450m, and a total addressable market (TAM) of £34bn by pairing commissions on retail network discounts with normal fintech revenue streams. Kaldi plans to use the funds raised to finish app development, increase its marketing budget and grow its core team. The app offers rewards from brands including Amazon, Morrisons, M&S, Ikea, Asda, Deliveroo, Just Eat, Boots, Primark and Starbucks.
CEO Nigel Rolt had previously successfully founded a business that he took to a $100m IPO. The company aims to empower young savers by auto-investing cashback from everyday shopping into low-cost index funds, along with education, saving nudges and top-ups from friends and family.
