How Brigit Built a $100M B2C Fintech (Interview Hamel Kothari)
Sep 15, 2024
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Hamel Kothari, co-founder and CTO of Brigit, a leading financial app, shares insights on their impressive growth to over $100M in revenue and one million subscribers. He discusses the challenges of creating a financial health app that alleviates short-term stress while building long-term wellness. Kothari highlights navigating the fintech landscape during the pandemic and the importance of operational readiness. He also contrasts the fintech scenes in New York and San Francisco, all while emphasizing a cautious approach to integrating AI in financial services.
Brigit has achieved significant milestones in consumer fintech, generating over $100M in revenue and one million subscribers through its innovative approach to financial health.
The company effectively addresses financial well-being by offering solutions like cash products and credit-building tools tailored to customer needs.
Brigit's journey emphasizes the importance of persistence in securing funding despite investor skepticism and highlights adapting to market changes, like those during the COVID-19 pandemic.
Deep dives
Bridget's Milestones and Market Position
Bridget has achieved significant milestones in the consumer fintech landscape, crossing over 100 million in revenue and gaining one million paying subscribers. The company's focus on being a financial health app allows them to cater to a wide segment of the American population by providing solutions for short-term financial stress and long-term financial wellness. Positioned above renowned competitors like Barclays and Robinhood in app store rankings, Bridget navigates a challenging market landscape where investor skepticism is prevalent. Despite these challenges, they demonstrate that it is possible to build successful consumer financial businesses even during times of unfavorable investor sentiment.
Bridget's Comprehensive Product Offerings
Bridget's primary offerings focus on addressing various aspects of financial well-being, starting with an instant cash product designed to help users avoid overdraft fees. This initial insight into overdrafts was critical, leading to the development of a credit-building product to help customers improve their financial status over time. Additionally, Bridget provides financial insights by analyzing transaction data to help users make better spending decisions and improve their overall financial health. By creating a bundled approach to personal finance, they seek to take customers on a journey toward enhanced financial stability.
Early Days and Investor Challenges
In its early stages, Bridget faced considerable hurdles when pitching to investors who were skeptical of consumer personal finance management products, particularly in 2017. The founders recognized a significant market opportunity due to the staggering number of Americans living paycheck to paycheck, which motivated them to pursue the venture. Despite delivering strong market insights and a solid team, they encountered challenges securing funding, ultimately securing a $2.5 million seed round after numerous investor meetings. These early experiences underscored the importance of persistence and clearly demonstrating the value proposition of their product to potential investors.
Adaptability During Market Shifts
Bridget successfully navigated market changes during the COVID-19 pandemic by leveraging cash flow data to assess customer risks proactively. Initially bracing for potential declines, the unexpected government stimulus led to improved financial conditions for customers, allowing Bridget to experience growth and profitability. This situation highlighted the effectiveness of their business model, which relies on understanding cash flow rather than traditional credit scores, in managing risk and adjusting to unforeseen events. Consequently, they were able to adapt their product offerings to continue serving customers seeking financial stability.
Future Growth Strategies and Opportunities
Going forward, Bridget aims to expand its reach within the consumer fintech space, where the number of individuals living paycheck to paycheck continues to rise. The company seeks to enhance its existing products while exploring new solutions that address additional financial challenges faced by users. Emphasizing focus on core offerings, Bridget is also looking into synergies in its product lineup to add more value for customers within its subscription model. Overall, their growth strategy is anchored in the mission to serve a larger portion of the market, tapping into the significant unmet needs in the financial health sector.
Last week, I had an insightful podcast interview with Hamel Kothari, the co-founder and CTO of Brigit.
We discussed how they've grown to over $100M in revenue, 1 million paying subscribers, and stayed profitable for more than two years. Brigit has built one of the top financial apps, ranking above companies like Barclays and Robinhood in the App Store.
In the episode, we explore how they thrived in a space many investors were skeptical about.
If you're interested in fintech or scaling a business, this podcast offers some valuable lessons on building a successful consumer fintech company.