Startup Charlie Secures $23 Million for Financial Services for Seniors

Charlie, a financial service provider for American seniors, has secured $23 million in capital, half a year after its launch and a $7.5 million seed raise. The startup specializes in banking services for individuals aged 62 and above.

A Rapid Investment Pace

Charlie’s recent funding comprises $16 million in Series A funding and $7 million in debt financing. TTV Capital led the new round, which also saw contributions from FPV Ventures and existing backer Better Tomorrow Ventures, among others. The rapid investment pace, with two capital raises in just a few months, is out of the ordinary and has garnered attention.

A Mission to Transform Senior Financial Services

Kevin Nazemi, co-founder and CEO of Charlie, initiated the company in late 2021 with the goal of revolutionizing financial services for the 62+ community. Since its launch, Charlie has attracted several thousand customers across all 50 states, according to Nazemi.

Charlie offers a variety of features, including faster access to Social Security checks, 3% earnings on balances, and the absence of monthly fees or minimums. The company, in partnership with Sutton Bank, also insures all deposits up to $250,000.

Addressing the Unique Needs of Seniors

Nazemi highlighted that over half of the 73 million seniors in the United States do not feel financially prepared for retirement. Charlie aims to address these concerns by providing a financial service that caters to their unique needs, such as protecting against financial fraud and assisting in the transition from accumulating assets to deaccumulation.

The company’s revenue comes primarily from interchange fees. Whenever a customer uses their Charlie Visa Debit card, Visa pays Charlie a portion of their earnings from the merchant. This model allows Charlie to offer customers no monthly fees and free access to over 55,000 ATMs.

Future Plans

The new capital will be used to roll out a suite of personalized fraud protections tailored for its target customers. Charlie also intends to expand its 15-person team and develop new products and features.

Gardiner Garrard, co-founder and managing partner of TTV Capital, noted that the COVID-19 pandemic has made more people, including seniors, comfortable with digital banking. According to Garrard, the early feedback received by Charlie has been very positive, indicating that their offerings cater to a pressing market need.