Leetchi, Leader in online money pot
Since then, the fintech Leetchi has been offering a secure online kitty 2009 service that has quickly convinced users with its ease of use and practicality. Claiming nearly 12 million users worldwide, the French fintech is the European leader in online kitty services.
How does it work?
Leetchi allows people who want to set up and finance a project to have a platform to collect some of the funds necessary to its realization. Among these projects, we can find absolutely everything: financing a charity trip through Europe, financial help for areas in need… The fintech thus allows to solicit the help of Internet users to support their project financially.
The steps to set up a kitty are simple and accessible to all Internet users:
1. Directly on the Leetchi website, the user can click on “create a fund” in the main menu of the site.
2. He will be redirected to the menu below, targeting more precisely the objective of his kitty.
3. To finalize the creation of the Leetchi kitty, the creator will have to identify himself and create an account on the fintech website.
4. Once identified, he will have access to a complete dashboard allowing him to manage his fund: description of the project, sharing buttons for social networks, statistics of participants and money collected…
5. Finally, Leetchi offers the possibility to the kitty managers to use the money collected at an e-commerce partner or to make a bank transfer directly to the kitty’s beneficiary.
Beyond its charitable and solidarity-based money pot system, Leetchi can also be used in smaller groups. Like other companies such as Lydia, the application can simply allow you to organize small collections of money, for a birthday party for example. You don’t have to have a big project to present to the world to use this money pot service: it is very well adapted to private settings. Leetchi ensures the security of the payments via its PCI DSS approved partner Payline, and has no access to the users’ banking information.
Chronology, history and fundraising
To get to where it is today, Leetchi has followed the classic path of fintechs wishing to develop rapidly: that of fundraising.
Created in 2009 as we mentioned in the introduction, Leetchi quickly benefited from financial contributions. Only a few months after its creation, in February 2010, the fintech raised €4500,000 from 360 Capital and Kima Ventures. In the wake of the service’s initial success, €1.2 million will be raised just one year after this first round of funding.
After about two years of development of the platform, the fintech raised a new round of financing from 360 Capital, in February 2012, for an amount of 4 million euros this time. The aim of this round was to propel Leetchi in Europe and to help it conquer other markets than the French one.
A fourth round of financing of unknown amount will be carried out in 2014, to accompany the growth of the fintech even more. But it’s in 2015 that Crédit Mutuel ARKEA will change things for Leetchi as the Group enters the capital of the fintech with nearly 86% of it. This means that 50 million euros were involved in this buyout and an additional investment of more than 10 million euros will be allocated by Crédit Mutuel to continue to accelerate Leetchi’s progression.
After 6 years of partnership, the relationship between the two companies seems to be coming to an end. The French bank would have asked Deutsche Bank for help to find a new owner for the French fintech. The future owner will surely have to offer a nice sum to acquire Leetchi. Despite some controversies like the complaint filed by UFC Que Choisir or some cases of blocked kitty, the 12 million current users should attract more than one investor.