Money management chatbot Plum raises $4.5m

The start up said users of its app jumped more than fivefold to 400,000 over the last year.

Money management chatbot Plum has raised $4.5m from investors, adding it plans to use the cash to double staff and expand into new markets.

The London-based artificial intelligence powered app said the cash call was led by Greek investment house VentureFriends and the European Bank for Reconstruction and Development.

The fintech said the chatbox, launched in 2017, “brings together AI and behavioural economics to help people manage their finances”. The app shows customers clearly view their savings and investments and spots “when users are wasting money on overpriced deals and underperforming financial products”.

The business, with offices in London and Athens, said its users jumped more than fivefold to 400,000 over the last 12 months.

Plum, founded by Victor Trokoudes (right) and Alex Michael, predicts it will save its users £100m this year.

The start up currently employees 23 staff, but plans to boost this to 50 by the end of the year. It operates in the UK and said it plans to expand into a number other European markets following the fundraising.  

Chief executive Trokoudes said: “We’re making an irreversible change in finance, putting consumers firmly back in charge of their own money.”

Last month, the app introduced its Splitter service, which links savings to investments and allows users to select “the percentage amounts to go into each pot from 0 to 100 per cent”.  

In total the start up has raised $6.3m since it was founded in 2016, before launching its service a year later.