British artificial intelligence businesses are gaining attention following Wayve’s $1 billion funding deal, Europe’s largest AI deal to date. Cleo, a financial support business founded in 2017 by Barney Hussey-Yeo, is now on the radar of many investors. Despite originally targeting the UK market, Cleo quickly shifted focus to the US due to its promising opportunities. However, plans to re-enter the UK market are in the works for this year or early 2025.
Sharing an investor with Wayve, Balderton Capital, Cleo is a London-based company that has shown significant growth in the US market. With 600,000 paying customers and over 10 times as many using the free version of the app, Cleo has been recognized by analysts as the only European fintech company that has successfully cracked the US market. Hussey-Yeo’s ambition is to reach over 1 billion customers and become the leading AI service for financial services.
Cleo functions as a digital assistant that provides users with financial tips and feedback using tools like ChatGPT. Offering features such as roasting users for excessive spending and cheering them on for making progress, Cleo aims to assist with budgeting, saving, and financial education. The company has also introduced credit products like cash advances. Hussey-Yeo envisions a future where digital assistants are integrated into every aspect of life, with Cleo being the go-to assistant for financial guidance.
Cleo’s success in the US market has paved the way for global expansion, with a focus on enhancing financial literacy, particularly among 18-36-year-olds who are tech-savvy and willing to share data for value in return. Built on the open banking revolution, Cleo leverages access to customer account data to offer personalized advice and services. The company sees a significant opportunity to make an impact in European markets where open banking is rapidly advancing.
Having raised nearly $140 million in funding, including an $80 million round led by Sofina Capital in July 2022, Cleo’s valuation has reached $500 million. The company’s workforce has grown to over 200 employees, and the company is close to achieving profitability. With plans for global expansion and a focus on leveraging AI tools for scalability, Cleo is well-positioned to change how a generation views financial services and improve financial literacy in markets worldwide.
