Eurobank has invested €10 million (£8.6 million) in Plum, a London-based money-saving and investment app. The investment marks Eurobank’s strategic entry into the digital finance sector and signals its commitment to fostering innovation and financial inclusion.
The first tranche of the investment, amounting to €5 million, was deployed in November 2023. The remaining €5 million is scheduled to be invested in the first quarter of 2024, constituting part of a broader €15 million fundraise by Plum that is expected to include additional investors.
This financial infusion is not merely transactional. Alongside the investment, Eurobank and Plum have entered into a strategic partnership, aiming to bolster Plum’s growth in Greece and neighboring markets. The collaboration is designed to leverage Eurobank’s financial expertise and Plum’s innovative approach to money management, creating a synergistic relationship that promises to redefine financial services in the region.
Plum, founded in 2016 by Victor Trokoudes, a former Wise employee, has positioned itself as a trailblazer in the fintech landscape. The app boasts over 1.8 million users globally and is recognized for its cutting-edge features, including automatic investments and savings. Trokoudes envisions reaching 700,000 active users in Greece by the end of 2027, an ambitious goal that aligns with Plum’s commitment to providing accessible financial solutions.
“This is a huge milestone for Plum, giving us the opportunity to turbocharge our growth in the EU following our success in the UK,” commented Victor Trokoudes, Founder and CEO of Plum. “Eurobank is one of Europe’s standout financial institutions, and we’re excited about working with them.”
The partnership is seen as mutually beneficial. Eurobank gains a foothold in the burgeoning digital finance sector, while Plum secures the support of a reputable financial institution to propel its expansion. The collaboration comes at a time when digital trends in financial services are gaining momentum, and there is a growing demand for innovative solutions to address consumers’ financial challenges.
Eurobank’s investment also underscores its confidence in Plum’s business model and the potential for growth in the European market. Plum’s unique combination of automation and artificial intelligence addresses real-world challenges, such as the rising cost of living, offering users a tool to build financial resilience.
“Many people are continuing to struggle with cost-of-living challenges, and need help to build their financial resilience,” added Trokoudes. “The Plum app is uniquely designed to address this through automation and AI. Now we want to push further, winning in the European market with the support of Eurobank. We look forward to seeing the impact of this unique partnership.”
Since its inception, Plum has successfully raised over £57 million, with its latest funding round in 2022 generating £1.7 million from crowdfunded investments. This new collaboration with Eurobank not only injects substantial capital but also provides Plum with a strategic ally to navigate the dynamic landscape of financial technology.
As Eurobank solidifies its position as a catalyst for innovation in the financial sector, the partnership with Plum exemplifies a forward-looking approach, positioning both entities to thrive in the evolving landscape of digital finance.