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Stash just nabbed $112 million from investors including LendingTree. CEO Brandon Krieg explained how the Series F will help the fintech's expansion into lending.

Brandon Krieg Stash

  • Investing and banking app Stash announced the closing of a $112 million Series F on Wednesday. 
  • LendingTree, the online marketplace, and T. Rowe Price both joined Stash's cap table as new investors.
  • Brandon Krieg, Stash's cofounder and CEO, told Business Insider the strategic investment from LendingTree will help the fintech explore offering lending products. 
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Personal finance app Stash closed a $112 million Series F Wednesday that included new investors LendingTree and T. Rowe Price in the midst of what has been a record-setting period for the startup.

Market volatility and uncertainty as a result of the coronavirus pandemic has helped Stash enjoy significant growth. Brandon Krieg, Stash's cofounder and CEO, previously told Business Insider customer deposits and account openings jumped by 50% and 35%, respectively, in March compared to the previous month. By April the New York-based startup eclipsed $1 billion in assets under management. 

Previous investors Breyer Capital, Goodwater Capital, Greenspring Associates, and Union Square Ventures all also participated in the round. Krieg declined to disclose the firm's valuation, but said it was an up round "by a lot" compared to the fintech's March 2019 $65 million Series E

Bringing LendingTree, which is a strategic investor, onto Stash's cap table is a nod towards Krieg's hopes of pushing the startup towards offering lending products.

"A lot of the things that LendingTree does, maybe over time we could do more with them to incorporate more lending products into Stash and also at the same time accelerate the amount of customers that we have," Krieg said.

"For us, being able to offer some of the products that LendingTree offers and working closer with them on that, it's going to be really good for our customers," he added.

It's not just experience on how to offer lending products Krieg is hoping to get from LendingTree. He also mentioned LendingTree's strength at marketing and growth. 

Acquiring customers efficiently is a top priority for nearly every fintech in personal finance. High customer acquisition costs are often one of the biggest things holding companies back from profitability. 

Krieg said Stash is on a path to profitability, although he declined to offer a specific timeline. The latest round of funding gives the startup a good amount of runway to hit its goals, he added.

"We're moving strongly in that direction, and we are thinking a lot about controlling our destiny and how do we ultimately not always have to raise," he said. "I think that we're in a good position, especially with this round, to get to the place where we continue to build out a business that's self-sustaining."

SEE ALSO: CEOs at Stash and Chime say they're seeing record signups as fintechs race to set up ways for customers to get stimulus checks quickly

SEE ALSO: Digital-only banks like Chime are seeing record signups amid the coronavirus pandemic. Here's how they drive revenue without lending or charging overdraft fees.

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