Osper closes £6m funding round

Osper, the company which markets prepaid debit cards for children, has closed a $10m (£6m) funding round, led by Index Ventures, which has previously backed SoundCloud, Etsy and Just-Eat.

The money will allow founder Alick Varma, the former maths teacher and ex-Spotify executive, to roll out the business across the UK. After the model is proven in the UK, he plans to export the Osper concept overseas.

Index Ventures’ Robin Klein joined Osper’s board following the funding round. The start-up boasts an enviable roster of additional investors.

Financial nous will be provided by Peter Jackson, ex-CEO of Travelex, who sold Travelex’s prepaid cash card business to Mastercard for £290m, as well as Funding Circle co-founder Samir Desai, and ex-chairman of Sainbury’s Bank Darren Chaplin.

However, Mr Varma retains the majority shareholding.

Osper’s revenue model is subscription-based. The app and card are free for the first year and £10 per annum thereafter. The subscription also features a financial app. The app is downloaded by both parent and child, and can be used to transfer money from the parent’s account instantly.

For the child, the debit card is an independent means to pay for goods and services, rather than using parents’ bank cards or cash. But, crucially, the app gives both parent and child a detailed breakdown of all transactions made through the card.

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