Neobank Vybe has just completed a €2.4 million round of financing, just eight months after raising €2.2 million in its previous round. The start-up, whose main target is teenagers, is determined to take its place in this highly competitive segment.
2 fundraising events and numerous pre-orders
Since launching its services in September, Vybe has recorded 260,000 pre-orders for its cards, but only a few thousand confirmed users.
The second round of financing, finalized a few days ago and announced on Tuesday April 6, has enabled the start-up to raise 2.4 million euros. This sum will be used in part to convert customers who have placed pre-orders, and to open accounts outside France, notably in Belgium, where 5-10% of pre-orders have been placed.
A third of the investors who took part in the second fund-raising round were already there at the time of the first operation, in July 2020. At that time, the neobank raised 2.2 million euros.
Vybe aims to position itself in a highly competitive segment: that of Generation Z, i.e. teenagers aged 13 to 17. It offers a free bank account, a card and an application, and earns its income through a cashback system: when its customers make a purchase from partner stores, they receive a small amount, and Vybe takes a commission of 2-4% on these transactions.
Appealing to teenagers and offering them an evolving product range
To appeal to Generation Z, the Vybe neobank relied on an attractive offer and well-tested marketing. Recognizing that the traditional banking sector's communication aimed at teenagers was outdated and unconvincing, the founders decided to collaborate with the very people they were targeting.
The community manager in charge of publications on Tik Tok is a trainee from the same generation, who knows the rules and customs of this social network better than anyone else. Many brands call on these young " Chief TikTok Officers " to appeal to their teenage clientele.
The Instagram account regularly features contests and adopts the right codes to appeal to a coveted target, and the start-up's Youtube channel has taken a leap forward thanks to a video by influencers McFly and Carlito.
From specialized start-ups such as Pixpay, Kard and Xaalys, to youth-oriented offerings from neobanks (Orange Bank, Ma French Bank) and even traditional banks (Société Générale's Banxup offering), there's no shortage of competition.
Vybe intends to stand out from the crowd with its well-honed marketing, but also wants to retain its teenage customers when they reach adulthood. The neobank hopes soon to be able to offer student loans and a bank card tailored to the needs of young adults.