BACK TO FEATURES
logo image
COMPANY: Frich
YEAR FOUNDED: 2021
INDUSTRY: Edtech, Fintech
HQ: New York, NY
FOUNDER: Katrin Kaurov, Aleksandra Medina
FEATURE
28 Nov 2023

Setting the Scene

  • Over the next few decades, there is going to be an unprecedented $68T wealth transfer to Gen Z.

  • Yet, this shift presents two critical challenges:

    1. Lesser-known banks face an uphill battle in attracting Gen Z customers.

    2. Gen Z lacks proper financial literacy, often turning to unreliable sources like social media influencers for advice.

  • This week’s company helps banks acquire new customers while providing financial literacy and transparency to the next generation. 

In a Sentence

Frich is a financial literacy app that bridges the gap between banks, brands, and the next generation of spenders.

  • Financial literacy: Frich provides content and tools for the next generation to learn, anonymously compare their financial standing, and take advantage of beneficial offerings.

  • Connects: Through Frich, banks and brands gain access to a coveted audience, offering products and perks directly to these young, engaged users

Bulleted Version

  • Envision Frich as the Strava of personal finance, offering a platform where users anonymously benchmark their finances against peers, enriched with educational resources and exclusive in-app perks.
cartoon

The Basics:

  • Headquarters: New York, NY
  • Employee Count: 7
  • Investors:

    Goodwater Capital, Restive Ventures, Antler, TruStage Ventures, Sunstone Investment

  • Funding amount: $1.4M
  • Currently raising: $1.7M Seed
  • Business model: B2B (banks, credit unions, or finance platforms pay Frich to offer co-branded products on the platform)
  • Early traction: 80k+ Gen Z users, 25k MRR, 70% 60-day retention, partnered with Columbia University and NYU

Due Diligence

WHAT WE LIKE
  • Market opportunity: The $68T wealth transfer over the next few decades will accelerate Gen Z’s spending power to be the largest of any generation within the next ten years.

    • Frich is poised to influence Gen Z’s early financial habits, while offering over 11,000 U.S. financial institutions a gateway to this younger demographic

  • 👩‍💻 User Acquisition: Frich’s strategic targeting of universities through ambassadors and curriculum partnerships lowers its user acquisition cost and captivates its ideal audience right at the source of their educational journey.

  • 📊 B2B business model: Unlike typical consumer fintech platforms, Frich’s approach caters to Gen Z with a free financial tool, while generating revenue through co-branded products from credit unions, community banks, financial platforms, and more

POTENTIAL RISKS
  • 😳 Privacy: Despite the anonymity of the financial comparison tool, Frich's requirement to share sensitive financial data could discourage potential users concerned about privacy.

  • 🧐 Staying engaged: In a digital realm where Gen Z's interests rapidly evolve, Frich must consistently innovate and adapt to keep this dynamic audience engaged and prevent user attrition.

  • 🌊 The Moat: Despite strong user numbers and retention rates, Frich's moat lies in its data-driven insights, rather than the technology itself, which is fairly replicable.

cartoon

Founder Profile

Why Frich

By empowering Gen Z with essential financial knowledge and linking their significant purchasing power to banks, Frich is positioned to make its investors f*ckin rich.