Gen Z Money App Frich Secures $2.8 Million in Seed Round

A community-driven money app for Gen Z, New York-based startup Frich has raised $2.8 million in a seed funding round. The app creates a platform for Gen Z users to discuss finances openly and honestly without competitive pressure.

Users can share financial data and ask questions anonymously to understand how peers manage their money. This helps them compare spending habits on items like entertainment, investing, and rent.

“Gen Z has no clue what to do with money, and we’re all pretending on social media that we have our lives together,” Frich co-founder Katrin Kaurov told TechCrunch. “There’s a strong disconnect between what’s shown online and what banks and financial institutions offer”, she added.

Frich’s community-driven approach allows users to seek and share financial insights, helping them navigate their financial lives. Its unique blend of social engagement and financial literacy helps to improve users’ financial wellness.

With over 100,000 users in key US markets like New York, Florida, and Texas, Frich is nearing $1 million in annual recurring revenue through a B2B subscription model.

The app generates revenue by partnering with banks and brands, charging a flat fee to be featured on its platform. Frich also employs an old-school marketing strategy, visiting campuses nationwide and leveraging ambassadors, alongside digital promotion on TikTok.

The recent funding will be used to expand the team, including key hires from Bumble and Robinhood. The app’s success so far underscores the growing interest from investors and developers in fintech solutions tailored for Gen Z.

Learn more about Frich by visiting its website here.