4/16/2023 0 Comments Twig trees![]() So that’s one potential wrinkle in Twig’s sustainability pitch. And it’s not clear that reducing friction involved in reselling will lead to consumers buying less overall. Or, to put it another way, circularity needs to work hand in hand with longevity if it’s to shrink consumption and actually reduce CO2 emissions. Selling a currently owned thing to free up cash might encourage the consumer to splash out and buy more new things than they otherwise would if they had held onto the original item for longer. ![]() Which does call into question the credibility of claims of “sustainability” being made to stretch around a concept of resale that risks fuelling increased consumption via instant valuations and cash outs, as Twig offers. Thing is, in order for humanity to avert climate catastrophe, major reductions in global CO2 emissions are required - so, essentially, less consumption overall. Its website also talks up its use of carbon offsetting and other initiatives to shrink environmental impact. That said, Twig is applying for B Corp certification which emphasizes social purpose and environmental performance, as well as transparency and accountability - Cupi says it’s in the final stage of the application it has pending status currently and he anticipates getting full status in Q1 - while its PR pushes claims of sustainability and circularity, given that it’s plugging users into selling (rather than binning) their branded goods. Now fintech startups compete to offer the most appealing feature mix to net a target youth demographic.īut it’s fair to say that getting money into accounts remains a key aim. In earlier decades, long before the internet- and open banking-fuelled fintech boom, legacy banks would pitch to get a new crop of school leavers signed up by offering freebies - like bags, stationery, music or other offers. For now it’s not in a hurry to turn into an actual bank, per Cupi. Not being a full fat bank means the startup can scale faster into new markets, with lighter regulatory requirements on the service than if it needed to obtain a banking licence. It’s also worth noting that despite having a marketing slogan which paints itself as “your bank of things”, Twig is not actually a bank rather a Twig account is an “e-money account” - so there are key regulatory differences (such as Twig accounts not being covered by the U.K.’s deposit guarantee scheme). Growth via user referrals looks likely to have helped fuel its early rise, given Twig charges users a £1 transfer fee for users to send money to a third-party account but there’s no fee if you transfer from one Twig account to another. He adds that the typical user is a 22-year-old, recently graduated professional female - perhaps with a bunch of stuff in her wardrobe that she’s outgrown and would be happy to resell. Founder and CEO Geri Cupi tells TechCrunch it has around 250,000 users at this stage. (slated for Q1 this year) and the EU (Q2 where it’s eyeing Italy, France and Germany for starters), as well as expanding the product’s capabilities and feature-set with a focus on the buzz around web3 and digital collectables.įor now, Twig accounts are only available in the U.K. The Series A is pegged for launching in the U.S. ![]() last July - but it touts rapid domestic growth (100,000+ monthly downloads of its apps reaching sixth position in the iOS App Store’s top finance apps) and is already gearing up for international expansion. ![]() ![]() The startup was only founded in mid 2020 - launching its service in the U.K. The investment is led by U.K.-based fintech specialist, Fasanara Capital, with additional backing from a number of undisclosed strategic investors which Twig says include current and former executives from LVMH, Valentino and Goldman Sachs, among others. Twig, a London-based fintech targeting Gen Z and younger millennial consumers with an e-money account that gives them instant cash-outs on fashion and electronics they want to sell, has closed a $35 million Series A round of funding. ![]()
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