Suma Wealth Secures $2.2 Million in Funding to Empower Young U.S. Latinos
In the past year, SUMA Wealth's platforms have experienced a 62% increase in users and nearly quintupled their revenue.
SUMA Wealth has secured $2.2M in funding as its financial platforms attract 1M users.
Suma Wealth, a California-based fintech company focused on empowering young U.S. Latinos to build wealth, has recently secured $2.2 million in new capital. This funding, led by Radicle Impact with participation from Vamos Ventures, OVO fund, and the American Heart Association Impact fund, will enable Suma Wealth to further develop its financial tools, content, and live and digital activations.
Building Financial Empowerment with In-Culture Content and Personalization
Suma Wealth, founded by Beatriz Acevedo, Mary Hernandez, and Javier Gutierrez, aims to provide young U.S. Latinos with a financial app tailored to their needs. The company believes that this demographic is often overlooked and seeks to offer in-culture financial content, products, and experiences to help them gain control of their economic power and build wealth. Suma Wealth also collaborates with financial institutions such as Morgan Stanley, JP Morgan, and Wells Fargo in engaging with the Latino demographic.
“We really lean hard into the AI features to be able to highly personalize how you spend your money and how you can do better, but also that our community comes from so many different countries of origin,” said Beatriz Acevedo. “It was very important that even on the features, even on the tone and the voice, even on the content that we serve you for education on what you’re trying to learn and accomplish, we do it in a way that is fully customized and personalized.”
The app’s personalized approach extends beyond just financial management. If you’re Venezuelan, for example, the app knows that and uses references and examples familiar to that culture or adopts a tone similar to that of your family members. This level of personalization makes Suma Wealth feel like a welcoming space for users.
Surprising Adoption Among Non-Latinos
While Suma Wealth was originally built with young U.S. Latinos and their families in mind, the app has seen surprising adoption among non-Latinos. Acevedo mentioned that 30% of their users are not Latinos, even though the app’s jokes, insights, and images are unapologetically Latino. This goes to show that Suma Wealth’s inclusive and personalized approach resonates with a diverse range of users.
Strong Growth and Revenue Increase
Suma Wealth’s dedication to personalized experiences has paid off, with its platforms experiencing 62% annual user growth. The app continues to be free for users, but the company has found ways to monetize its partnerships with different brands, such as dating app Match.com, as well as offering additional personalized coaching features. The enterprise app is also subscription-based for companies to purchase for their employees or customers.
In addition to its customer growth, Suma Wealth has seen a nearly five-fold increase in revenue in the past year. The company has also made strategic acquisitions, adding to its offerings. The acquisition of Intellecto, a learning management system, further enhances the user learning experience, while the acquisition of savings and personal finance platform Reel has brought Daniela Corrente, Reel’s co-founder and CEO, onboard as Suma Wealth’s Chief Strategy and Business Officer.
Future Developments and Expansion Plans
With the new funding, Suma Wealth plans to invest in further expanding its technology offerings, particularly in AI personalization, data, and analytics. This will allow the company to enhance the user experience and provide more tailored financial solutions. Additionally, the funding will be used to acquire Intellecto, making the learning management system an integral part of Suma Wealth’s platform. The company will also be making new hires across engineering, product, and sales to support its growth and expansion efforts.
Q&A
Q: How does Suma Wealth personalize its financial app for young U.S. Latinos? A: Suma Wealth uses AI features to customize and personalize the app based on the user’s country of origin, making references and examples that are familiar to their culture. The app’s tone and voice are also tailored to match the user’s preferences.
Q: Is Suma Wealth only for young U.S. Latinos? A: While Suma Wealth was initially built for young U.S. Latinos, the app has gained popularity among non-Latinos as well. Approximately 30% of Suma Wealth’s users are non-Latinos, indicating its appeal and usefulness to a diverse range of individuals.
Q: How does Suma Wealth monetize its app? A: Although Suma Wealth remains free for users, the company has formed partnerships with brands such as Match.com and offers personalized coaching features to generate revenue.
Q: What are the future plans for Suma Wealth? A: Suma Wealth plans to expand its technology offerings through AI personalization, data, and analytics. The company also aims to acquire Intellecto, a learning management system, and will be making new hires across engineering, product, and sales to support its growth.
Conclusion
The recent funding secured by Suma Wealth provides the company with additional resources to continue creating financial tools and content that empower young U.S. Latinos to build wealth. With its focus on in-culture content and personalized experiences, Suma Wealth has seen impressive user growth and revenue increase. The app’s adoption by non-Latinos further demonstrates its appeal to a wider audience. Looking ahead, Suma Wealth’s plans for technology expansion and strategic acquisitions indicate a promising future, ensuring that users receive personalized and effective financial solutions.
References:
- SUMA Wealth official website
- California-based fintech company – ENBLE
- Suma Wealth helps Latinos build credit through gaming, in-culture content – TechCrunch
- Where top VCs are investing in fintech – Crunchbase
