Greenlight Financial Technology Inc has scored $16 million from Amazon.com and other investors. The Atlanta-based firm, which has developed a debit card for children, plans to add up to 100 jobs in the next two years.
The Series A investment, which reportedly values three-year-old Greenlight at about $50 million, could increase to $20 million, a source said.
New investors in Greenlight include Amazon Alexa Fund, SunTrust Banks Inc. (NYSE: STI) and Ally Financial Inc. (NYSE: ALLY). Existing investors TTV Capital, New Enterprise Associates (NEA) and Relay Ventures participated in the round.
Greenlight has developed the “world’s first” smart debit card for kids, which it says is safer than cash. The card allows parents to manage their children’s spending from a smartphone. For example, a parent can pick the stores where their kids can spend, freeze the card if lost or stolen, receive spending alerts and automate allowances.
Greenlight is expected to partner with new investors SunTrust Bank and Ally Financial to offer its cards. The startup will also develop "skills" to enable consumers to transfer cash from a Greenlight account via Amazon’s Echo and Dot smart speakers
“We were drawn to Greenlight because of its customer-first approach to give parents the ability to manage their kids’ spending and to give kids the tools to be financially literate,” Amazon Alexa Fund Director Paul Bernard noted in an e-mail. “We’re excited about the possibility of bringing the natural and frictionless experience of voice to payments and look forward to working with Greenlight to make that a reality with Alexa.”
Teaching kids how to be smart with money used to be done with paper and coins, said Gardiner Garrard, partner with TTV Capital, an Atlanta venture firm that led Greenlight’s Series B.
“This approach to financial education has become more difficult as the world moves away from physical currency to a world dominated by digital transactions,” Garrard said. “By creating a safe and smart debit card for kids that parents manage from their phone, Greenlight has transformed every transaction into a teachable moment.”
Greenlight is addressing a large market — there are 50 million households in the United States with at least one child under 18 years living at home. The company has four patents pending on its card.
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