Kids’ finance startup GoHenry forays into Europe with Pixpay acquisition
- ByStartupStory | July 11, 2022
GoHenry, founded in London in 2012, has emerged as one of the leading fintech startups for children, offering a digital interface that enables parents to allocate & control finances while their kids learn how to budget & gaining insight into their spending patterns. GoHenry entered the United States in 2018, and the firm now claims more than two million subscribers in these two areas – it also claims around one-sixth of 12-year-olds already have a GoHenry debit card.
Pixpay, on the other hand, was created in Paris only around three years ago but is a similar proposal to GoHenry, but with an emphasis on somewhat older children, beginning at the age of 10. Back in November, the firm expanded into Spain, bringing its total membership to roughly 200,000 from across two markets.
While GoHenry has had to start from scratch in the United States, it’s clear that it’s taking a different approach in markets closer to home — and there are many benefits to buying an established company with traction like Pixpay, perhaps the most important of which is that GoHenry doesn’t have to worry as much about hiring, localization, and launch campaigns. Indeed, GoHenry stated that it had no plans to merge the two firms and that their distinct brands, leadership teams, and headquarters would stay unchanged.
GoHenry’s acquisition of Pixpay makes sense in terms of supporting its expansion goals without having to start fresh in new areas. GoHenry now has two additional markets under its wing, with another two planned for later this year because Pixpay prepares to debut in Italy and Germany.
It also makes sense from Pixpay’s standpoint, considering that GoHenry now has a large presence in two big markets plus ten times the number of clients as Pixpay. Consolidation, rather than rivalry, makes life simpler for both firms. “It made perfect sense to integrate our experience with GoHenry’s to accelerate our expansion goals,” said Pixpay CEO Benoit Grassin.
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