Pockit, a UK-based fintech startup, has recently raised $10 million in a funding round led by Puma Private Equity. The company aims to provide financial services to those who are underserved by traditional banks. With this latest funding, Pockit plans to enhance its credit building tools, introduce a buy now, pay later product, and expand its platform into investments, insurance, and savings accounts. Founder and CEO Virraj Jatania believes that this funding will allow Pockit to weather future challenges and continue to meet the needs of its customers. In this article, we will explore the journey of Pockit, its mission to address financial exclusion, and the potential impact of its services on the underserved and low-income communities.
Pockit was founded by Virraj Jatania in 2015 with a vision to solve the problem of financial exclusion. Jatania’s own experiences growing up in Uganda and witnessing the inefficiencies of cash-based economies inspired him to create a company that could provide essential financial services to those who need them the most. After moving to London for university, Jatania realized that financial exclusion was a global issue and decided to take action.
Initially starting as a prepaid card, Pockit quickly expanded its offerings to include a range of financial services. The company now provides international money transfers, income advances, budgeting tools, and cashback deals through partnerships with retailers. Customers can also set up direct debits and deposit or withdraw cash at thousands of locations across the UK.
Pockit’s approach is unique in that it focuses on serving low-income and underserved communities that are often overlooked by traditional financial service providers. Jatania believes that many of these providers prioritize profit margins over financial inclusion, resulting in legacy systems that are not designed to meet the needs of these customers. Pockit, on the other hand, is built specifically to serve these communities and offer services that can help improve their financial stability.
While Pockit aims to be a champion for the underserved, some of its services have faced criticism. Instant cash advance apps, which Pockit offers, can carry risks for users. The terms and conditions of these apps are not always clear, and users can become dependent on early payments, leading to financial difficulties. Additionally, Pockit’s planned buy now, pay later feature has raised concerns about encouraging excessive spending and potential negative impacts on credit scores.
Despite these challenges, Jatania maintains that Pockit is committed to the best interests of its users and investors. He points to a report that found a significant portion of the UK population lacks access to basic financial services, highlighting the need for companies like Pockit to address this issue.
Since its launch, Pockit has experienced significant growth, now serving over 800,000 customers and processing billions of dollars in transactions. The recent funding round of $10 million will be used to expand the company’s team and further develop its services. With a goal of reaching 100 employees by early 2024, Pockit aims to continue its mission of becoming the financial champion for millions of people.
The impact of Pockit’s services extends beyond providing basic financial services. By offering tools for credit building, investments, insurance, and savings accounts, Pockit empowers its customers to improve their financial stability and plan for the future. The company’s partnerships with retailers also allow customers to save money through cashback deals and find opportunities for cost savings in their mobile and broadband plans.
In conclusion, Pockit, a UK-based fintech startup, has raised $10 million in funding to support its mission of addressing financial exclusion. The company offers a range of financial services to underserved communities, including international money transfers, income advances, and budgeting tools. While Pockit has faced some criticism for certain aspects of its services, it remains committed to serving the best interests of its users and investors. With its recent funding, Pockit plans to expand its team and further develop its services, with a goal of becoming the financial champion for millions of people. Through its innovative approach, Pockit aims to empower its customers and improve financial stability for those who need it the most.
First reported on TechCrunch
Frequently Asked Questions
1. What is Pockit’s mission as a fintech startup?
Pockit aims to address financial exclusion by providing essential financial services to underserved communities, particularly those who are often overlooked by traditional banks. The company’s goal is to offer tools and services that can help improve the financial stability of its customers.
2. How did Pockit start, and what inspired its founder to create the company?
Pockit was founded in 2015 by Virraj Jatania, who was inspired by his experiences growing up in Uganda and witnessing the inefficiencies of cash-based economies. After moving to London for university, he recognized that financial exclusion was a global issue and decided to create a company that could provide financial services to those who need them the most.
3. What are some of the financial services offered by Pockit?
Pockit provides a range of financial services, including international money transfers, income advances, budgeting tools, and cashback deals through partnerships with retailers. Customers can also set up direct debits and deposit or withdraw cash at thousands of locations across the UK.
4. How does Pockit differentiate itself from traditional financial service providers?
Pockit focuses on serving low-income and underserved communities that are often neglected by traditional financial service providers. The company is built specifically to meet the needs of these customers and aims to prioritize financial inclusion over profit margins.
5. What challenges has Pockit faced in its journey to address financial exclusion?
Pockit has faced criticism for some of its services, particularly instant cash advance apps, which can carry risks for users. The company’s planned buy now, pay later feature has also raised concerns about encouraging excessive spending and potential negative impacts on credit scores.
6. How has Pockit grown since its launch?
Since its launch, Pockit has experienced significant growth, now serving over 800,000 customers and processing billions of dollars in transactions. The recent funding round of $10 million will be used to expand the company’s team and further develop its services.
7. How does Pockit empower its customers beyond basic financial services?
Pockit offers tools for credit building, investments, insurance, and savings accounts, empowering its customers to improve their financial stability and plan for the future. The company’s partnerships with retailers also allow customers to save money through cashback deals and find opportunities for cost savings.
8. How does Pockit plan to use the recent funding of $10 million?
The funding will be used to expand Pockit’s team and further develop its services. The company aims to reach 100 employees by early 2024 and continue its mission of becoming the financial champion for millions of people.
9. How does Pockit plan to navigate the challenges and criticisms it has faced?
Pockit remains committed to serving the best interests of its users and investors. The company acknowledges the need to address concerns about certain aspects of its services and aims to continue its mission of providing essential financial services to underserved communities.
10. What impact does Pockit’s services have on underserved and low-income communities?
Pockit’s services empower underserved and low-income communities by providing access to financial tools and services that can improve their financial stability and well-being. By offering resources for credit building, investments, insurance, and savings, Pockit helps its customers plan for a better financial future.
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