Z1 is a fintech that provides a digital account aimed specifically at adolescents, focusing its product and communication on teenagers rather than parents. The company seeks to build financial autonomy for young users and retain them as customers into early adulthood. Z1 says many of its users already work or want to establish healthier money habits early. The new capital will be used to develop new products and features to broaden its audience and support customers as they transition to adulthood. Z1’s leadership frames the market since early 2022 as more challenging, with investors demanding greater financial sustainability. Cofounder and CEO João Pedro Thompson emphasized the team’s appreciation for the renewed vote of confidence from investors. Z1 is a Brazilian neobank that provides digital accounts and a linked prepaid card aimed at helping Brazilian and Latin American teenagers and young adults gain financial independence. The company was co-founded in 2019 by João Pedro Thompson, Thiago Achatz, Mateus Craveiro and Sophie Secaf. Since its prior raise in April, Z1’s revenue grew 26x and continues to increase at almost 40% per month, while its customer base expanded eightfold at roughly 30% monthly growth. Z1 recently began offering its core banking experience for free after previously charging a $2 monthly subscription. The new capital will fund hiring—planning to grow headcount from 60 to over 100 within three months—and product, engineering, marketing and customer experience to support a target of 10x growth in the next 12 months. The company plans to add features focused on financial inclusion and literacy and benefits from wider adoption of Brazil’s PIX instant payments system among Gen Z users. Z1 is a digital bank app built for teenagers and young adults, pairing an account with a linked prepaid card. The product lets teens deposit money, cash out via Brazil's instant payment system and spend through a prepaid card; the team is building features to enable saving for big purchases and earning interest. Z1 emphasizes a Brazil-specific approach rather than a top-down parental model, reflecting local behaviors where many teens use cash and earn independent income early. The company is focused initially on Brazil with plans to expand into other Latin American countries over time. Since launch Z1 reports rapid user growth—about 30% per week and 200% per month—while spending very little on marketing and relying on word-of-mouth and TikTok. Founders say they are acquiring users early to create long-term brand loyalty and grow with customers into adulthood. Z1 operates a digital account and prepaid Mastercard targeted at users under 18, combining payments with financial-education content. The app (iOS and Android) gives minors an independent account and a prepaid card that permits online and in-store purchases while preventing debt. Z1 charges a R$10 monthly fee only in months when a transaction occurs and deliberately avoids relying solely on interchange fees. The company runs a community of users aged roughly 8–20 who co-create educational content, and the product roadmap includes new features focused on education and community building. The public app launched in January 2021 after nine months of beta testing, and the user base has been growing rapidly (about 30% week-over-week according to the article). Z1 positions itself to address a large market in Brazil and Latin America, where adolescents represent a multibillion-dollar spending cohort.

Total raised

$23M

Funding rounds

4

Latest round

Equity

Latest activity

Apr 2023