Ensemble’s App and Current Business Model
Fintech startup Ensemble has created a financial expenses app designed specifically for divorced parents. The app helps these parents manage joint expenses dealing with their children and other shared responsibilities without having to talk in great length about such matters. More importantly, the fintech startup wants to help ease financial-related tensions that arise between divorced couples in order to benefit the children who are stuck in the middle of these adult situations.
The startup has loaded the app with several features that help reduce the need for in-person financial communications to reduce the possibility of an argument. The company has also added financial splitting proposal features as well as the ability to track spending by month, by child, or by category. The Ensemble app provides notifications for all updated proposals and paid expenses so that neither parent will be left out of the loop.
In April of this year, the company released the latest version of the app allowing for parents to connect their bank accounts directly. This comes after a soft launch using only credit cards in January.
While the company currently offers the app for free, Ensemble plans to integrate a monetized business model in the near future. This business model will include a paid subscription service for the app.
While no specific metrics on downloads or members have yet to be released, about 30% of the users on the app organically discovered the app on their own. As it currently stands, Ensemble is tracking on average $1,000 worth of expenses each month per user.
Seed Funding and Future Plans for Ensemble
During the seed funding round for the business, Ensemble raised $3 million. The funding round was fueled by participation from TTV Capital, Lerer Hippeau, and Citi Ventures. This funding will help the fintech startup expand its business through outreach and app improvements. The company will also be using this funding to develop a larger suite of financial products that largely deal with banking and shared credit cards.
This is especially salient considering that, while divorce rates are lowering across the United States (US), about 42% of marriages are still ending in divorce. This makes the need for shared expense services incredibly large.
When commenting on the need and purpose of the finance app, founder and CEO of the company, Jacklyn Rome, said, “Even in the most amicable divorces, money is the number one thing that divorced parents end up arguing about. In more contentious divorces, it often gets used as a power lever among two emotionally charged individuals with no other tools at their disposal. We set out to build a product that eases tense communication about shared finances and serves the nuanced needs of separated parents.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.