Less than six months after launching to the public and announcing a $7.5 million seed raise, Charlie, a startup providing banking services to Americans over the age of 62, has raised additional funding. This new capital injection is a significant milestone for Charlie, demonstrating the growing demand for innovative financial solutions tailored specifically to seniors.
A New Era in Financial Services
The days of closing two capital raises in a matter of months are mostly long gone, so it naturally caught our attention when Charlie’s co-founder and CEO, Kevin Nazemi, reached out to share that the company has secured $16 million in Series A funding and $7 million in debt financing. This new investment brings the total amount raised by Charlie to $23.5 million.
TTV Capital Leads the Latest Round
The latest round was led by TTV Capital, with participation from FPV Ventures and existing backer Better Tomorrow Ventures, among others. Gardiner Garrard, co-founder and managing partner of TTV Capital, shared his thoughts on Charlie’s growth potential: "The COVID-pandemic led to more people — including those aged 62 and older — becoming more comfortable with digital banking. This created a massive opportunity for financial institutions to more directly engage with this demographic."
Meeting the Unique Needs of Seniors
Charlie was founded in late 2021 by Kevin Nazemi, with the mission of "transforming" financial services for the 62+ community. Since its launch in May, Charlie has acquired several thousand customers across all 50 states, according to Nazemi. The company’s features include faster access to Social Security checks, 3% earnings on balances, and no monthly fees or minimums.
A Holistic Approach to Financial Services
Like many fintechs, Charlie is not a bank — its banking partner is Sutton Bank, which insures all deposits up to $250,000. Nazemi emphasizes the importance of addressing the unique financial needs of seniors: "Over 50% of the 73 million seniors in the United States do not feel prepared financially for retirement, and for too long, their unique financial needs have been neglected." Charlie is designed to meaningfully address these challenges.
Addressing De-Accumulation Mode
One of the things Charlie is designed to address is the fact that until a person retires, they are accumulating assets. But once they retire, they go into "de-accumulation mode." This can be scary and challenging for older adults. To help them adjust, Charlie says all customers who signed up after September 1 can withdraw their Social Security benefit 3-5 days early (those who signed up before can withdraw it 4 weeks early).
Revenue Model
Charlie makes money through interchange fees; when a customer spends money with their Charlie Visa Debit card, Visa pays Charlie. Nazemi notes that this revenue model allows Charlie to provide valuable services to seniors while generating revenue.
A Bright Future Ahead
With the new funding, Charlie is poised to expand its services and reach even more seniors. This investment demonstrates the growing recognition of the need for innovative financial solutions tailored specifically to this demographic. As Nazemi puts it, "We’re just getting started."
