January 25, 2021

San Francisco challenger Oxygen raises $17m in Series A

US-based digital banking platform Oxygen has raised $17 million in Series A funding from a raft of investors.

Among “celebrity” endorsements, its backers include from Runa Capital, S7V, 1984.vc, EFG Hermes, Rucker Park, and Inventures.

Oxygen has raised $24m since 2018

Oxygen “is designed from the ground up” to provide banking services to consumers and small businesses.

The challenger claims to have secured 125,000 accounts since launching in January 2020. Account holders receive a Visa debit card with cashback rewards, insured via Oxygen’s FDIC [Federal Deposit Insurance Corporation] partnership with The Bancorp Bank.

Oxygen believes it is the first institution to launch with both consumers and businesses in mind. It tracks freelancers’ bills, projects their income, and offers instant credit via a mobile app.

“We are humbled that our investors are putting their faith in us with this most recent round of funding,” says Hussein Ahmed, Oxygen CEO.

“This investment not only validates what we’ve built but also enables us to continue pursuing our vision.

“We founded Oxygen because we wanted to provide financial services in the same way people interact with technology in their everyday lives.”

“Something different”

The neobank plans to use its new funding to boost the development team, accelerate growth and build new products.

Oxygen has raised a total of $24 million since March 2018. Its last financing, a seed round worth $7 million, came in January 2019.

Among its investors is Frank Strauss, a Deutsche Bank retail banking executive and former CEO of the German Postbank.

“When I witnessed the customer engagement around the Oxygen platform, I knew immediately they were offering something truly different for consumers and small businesses,” he says.

“What’s more, I’ve been struck not only by the vision but also the ability of the management team to execute quickly.”

Related: Former Uber Money head bags $12.4m for new venture Synctera