Financial education and tools for better budgeting and expense tracking is a growing need among newer generations of people. As a result, the market is being filled with different websites and apps in order to fill this demand. Splitwise is a fintech startup that aims to help share expenses and keep better track of one’s finances. The fintech company recently closed its Series A funding round. This funding will be used to help expand business operations and further develop the technology created by the startup.
How Splitwise Works and Early Success
Fintech startup Splitwise has developed and launched an app that helps users keep track of finances and share expenses with each other. The app can split costs between users and friends by percentage, calculate total balances, simplify debts, categorize expenses, and works with over 100 different currencies. The app also syncs to the cloud. The Splitwise app is available on both Android and iOS devices.
The app developed by the company is also offered in a paid pro version. The pro version offered by the fintech startup provides several other features like currency conversions, receipt scanning, itemized expense reports, charts, and graphs. The company has also seen significant growth in business over the past few years.
In fact, the fintech business has seen over $90 billion in transactions and expense splitting since its launch. Additionally, the company has experienced a significant boost in overall business since the onset of the COVID-19 pandemic. Many household costs were split between living partners to create a more contactless experience. Additionally, with the opening up of restaurants and other group activities, the startup is set to experience an even larger uptick in activity over the course of 2021.
This has excited several investors who see strong business potential in the Splitwise app.
Splitwise Funding and Future Plans
In the Series A funding round for the fintech company, Splitwise raised $20 million in capital. The funding round was led by venture capital and global equity firm Insight Partners. The new funding will allow for the fintech startup to expand business operations by hiring a larger staff, accelerate its global customer base, and create new partnerships with platforms already integrated into the fintech and financial services world.
The new funding for Splitwise comes at a pertinent time for the global travel and expense management software market. In fact, the global market for the industry is worth $6.9 billion. The market is also set to grow even larger, with a compound annual growth rate of 12.4% until 2027. As Splitwise continues to grow, the company expects to take a larger market share within the expense management software industry.
When commenting on the most recent funding round, CEO and co-founder of the fintech company Jon Bittner said, “Amid COVID-19, Splitwise was more important than ever for people who live together, allowing them to share costs of daily essentials when they were hard to come by. I'm even more excited about the year ahead as the world reopens to travelers, who will also benefit massively from sharing expenses with Splitwise.”
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.