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COMPANY: Klutch
YEAR FOUNDED: 2019
INDUSTRY: Fintech
HQ: San Francisco, CA
FOUNDER: Rachel Ehrlich, Renato Steinberg
FEATURE
16 May 2023

Setting the Scene

  • Your wallet is bursting with credit cards, and your phone is cluttered with finance apps.

    • Each card serves a specific purpose, whether it’s for travel, shopping, or scoring 6% cash back on avocado toast. 🥑

    • You have finance apps for budgeting, tracking subscriptions, and receiving discounts at local stores. 🛍

  • The chaos in your wallet and on your phone makes you struggle to manage payments and stay organized.

  • This week’s company consolidates and personalizes finances through a tech-driven credit card.

In a Sentence

Klutch is a credit card that enables users to customize its features.

  • Customize: Consumers and businesses select financial tools and rewards from an app store or build their own apps.

  • Features: Cardholders can choose from single-use cards, parental controls, budgeting tools, payment automation, and more.

Bulleted Version

  • Similar to how the App Store lets users add apps to their smartphones, Klutch allows users to add MiniApps to customize their credit cards.📱
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The Basics:

  • Headquarters: San Francisco, CA
  • Employee Count: 3
  • Investors: Lakehouse Ventures, Plug and Play Ventures, 500 Startups, angels
  • Funding amount: $1m
  • Currently raising: $3m
  • Business model: Interchange, interest, subscription for premium apps, b2b partnerships
  • Early traction: Over 10,000 user sign-ups, $550k in total transaction volume, strong organic growth, users opening the app 11x per week, 0 defaults

Due Diligence

WHAT WE LIKE
  • 📈 All-in-one: Klutch aligns with consumer demands in the evolving credit card industry by combining the convenience and security of digital banking with tailored financial tools and rewards.

    • Plus, the company allows programmers and companies to build MiniApps to meet their specific needs.

  • 💸 Revenue streams: Beyond interchange and interest, the company brings in reliable revenue and builds cash reserves by offering premium MiniApp subscriptions.

  • 👤 The everybody card: Klutch’s personalized credit cards cater to various use cases and needs, enabling the company to attract broad consumer and corporate end markets.

POTENTIAL RISKS
  • 💰 Extending credit: Klutch must maintain sufficient capital reserves to offer credit to a growing user base, cover potential defaults, and comply with regulatory requirements.

  • 🏦 Credit card competition: The company may struggle to take users from well-established financial institutions with significant resources, brand recognition, and consumer trust.

  • ✏️ Learning curve: Klutch must invest in customer education, support, and engagement to ensure users keep up with new features and leverage the card’s full potential.

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Founder Profile

Comps

Why Klutch

By allowing customers to customize their credit cards with an app store of features, Klutch may be credited for disrupting digital banking.💰