UK’s artificial intelligence industry is gaining attention as Wayve, a self-driving car start-up, has secured a $1 billion deal, the largest AI deal in Europe. Another prominent AI business, Cleo, founded in 2017 by Barney Hussey-Yeo, has also been generating interest. Cleo started in the UK but shifted its focus to the more promising market in the US. The financial support business has garnered investments from Balderton Capital and has seen significant growth in the US market.
With over 600,000 paying customers and a growing user base in the US, Cleo has been praised for its success in cracking the US fintech market. The company aims to be the go-to AI service for financial services, with plans to reach over 1 billion customers. Using tools like ChatGPT, Cleo acts as a digital assistant to help users budget, save, and improve their financial literacy. The app also offers credit products like cash advances.
Cleo’s success in the US has set the stage for global expansion, as the company looks to leverage the open banking revolution. With the majority of US bank accounts connected to fintech services, Cleo is positioned to make an impact in European markets as well. The company believes AI tools can drive positive outcomes at scale, especially with the rapid advancements in generative AI and large language models.
Having raised nearly $140 million in funding, including a recent $80 million round, Cleo’s valuation stands at around $500 million. While unicorn status may be on the horizon, the company is focused on maintaining its cash-generative business model and is close to achieving profitability. Hussey-Yeo emphasizes the potential of AI technology in revolutionizing financial services and improving financial literacy among younger generations in Europe.
Cleo’s unique approach to financial management through AI-driven digital assistants sets it apart in the competitive fintech landscape. The company’s success in the US market, particularly among tech-savvy young adults, highlights its potential for global expansion. By leveraging the capabilities of AI tools and open banking partnerships, Cleo aims to change how people perceive and interact with financial services on a global scale.
As Cleo continues to grow and innovate, it remains a key player to watch in the evolving AI and fintech industry. With plans to re-enter the UK market and expand further into Europe, the company’s focus on leveraging technology for financial empowerment positions it for continued success and impact in the coming years.
