Whether it has been with a significant other, roommate, or friend, chances are you’ve been subject to the chaos of splitting expenses.
This usually unfolds in several disorganized ways:
Awkward Venmo requests: These often lead to disputes and uncomfortable conversations.
The notes app: That ever-growing laundry list of who paid for groceries tends to be a disaster and often inaccurate.
An excel sheet: There’s nothing more romantic than a shared Google Sheet and crunching numbers on date night.
This week’s company provides a platform that allows couples to automatically split and manage expenses.
Smoov is an app for couples to split and manage expenses.
Couples: Smoov primarily targets couples but the technology is applicable to roommates, friends, families, and more.
Split: The app integrates with credit cards and bank accounts, automates calculations based on the selected split percentage, and enables one-tap splitting and money transfers.
To reach $10M in ARR with only subscription revenue, Smoov needs less than 1% of the married millennial market— which doesn’t factor in Gen Z, unmarried couples, or friends.
👩💻 Couples need a solution: 42% of couples in the US report having financial disagreements with their partner, and couples report that the majority of their Venmo transactions are with their partners.
Smoov’s positioning to address couples and their finances is a huge opportunity reinforced by an early bet by top-tier firm, Spark Capital.
📊 Future revenue streams: Beyond subscriptions, Smoov has an opportunity to charge transaction fees, sell data, and form synergistic partnerships with dating apps.
💰 Fundraising: Smoov's limited traction post-beta may spark investor caution, even though these funds are critical for scaling their distribution and product development efforts.
🤔 Adoption Resistance: In a market filled with generic finance tracking apps, Smoov may struggle to convince users that a specialized app for couples is a necessity rather than a luxury.
👣 The giants: Financial behemoths like Venmo and Cash App could potentially break into the couples' market by rolling out new features.
Smoov needs to innovate swiftly to become an acquisition target, rather than a feature they could replicate.
By providing a seamless solution for splitting bills, tailored to how modern-day couples spend together, this company is flirting with a huge opportunity.