A new savings app offering a 3% fixed income return and targeting millennial savers has seen $3.4 million from 850 investors flow into its coffers in the week since it launched.
Blossom, which is targeting women, and honours the nickname of founder Gaby Rosenberg’s late grandfather, is being backed by Fortlake Asset Management, which has serial investor Alex Waislitz as its major shareholder.
Rosenberg, who comes from a family with a strong background in finance, had relatives rally around to build her startup.
“Much like [my grandfather] used to bring the whole family together, Blossom’s done the same thing,” she said.
Her sister, a psychologist, father, cousins and other relatives have all been part of building the startup
“The Blossom App provides almost a one stop shop for people to both save and invest through an easy-to-use app, with savings goals and add-ons to make the task of saving and investing more convenient and rewarding,” she said.
“We have opened the door to everyone to reach their savings goals and invest in the relatively low risk fixed income market – once the sole domain of institutions and sophisticated investors – through Fortlake.”
Fortlake is Blossom’s fund manager, with support from Gleneagle Securities as responsible asset manager.
Blossom has no minimum investment limit and no sign up or transfer fees. It’s available for iOS, Android and web.
Rosenberg said her platform is targeting women, who identify more as savers than investors and offers a middle ground for risk adverse person.
The startup is majority female owned and operated.
In an era of near-zero interest rates, the promise of a 3% return has attracted 850 customers who’ve handed over $3.4 million in savings in Blossom’s first week of operation since launching on June 7.
“The pandemic has negatively impacted returns from deposits, leaving few options available for millennials to do more with their savings without significant risk of losing their capital,” Rosenberg said.
“We know how important it is to have a savings safety net, so we are proud to be able to help Blossom users nurture their savings and work towards financial freedom.”
Billionaire Alex Waislitz, chair of Thorney Investment Group, said Blossom’s appeal was clear.
“In a low interest rate world, people are looking for smarter ways to make their savings work for them,” he said.
“Blossom is able to provide income and security levels that will appeal to many savers.”
In keeping with the growth theme, Rosenberg has pledged to plant a tree in an Australian bushfire affected region when a new customer puts funds into their account for the first time.