Family-focused financial services app MyMonii is the latest fintech company to break through.
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The Danish fintech targeted families with children/teenagers aged 7 to 18 and offered a parent-controlled Visa credit card and an app for setting savings goals.
Founder Louise Ferslev says the company’s failure after eight years in business was due to unit economics as the company tried to scale up the business.
“MyMonii was too expensive to run and scale compared to what we could generate in revenue per family. In the end, we were able to make MyMonii break even – but with a team that was far too small to continue growing. Therefore, we could not imagine a way to become profitable in the future.
“It was a decision that was not easy for us. Building a business and making it successful is extremely complex and difficult. And while we’ve been successful at many things, it’s not always enough.”
She says the company now has new owners who could potentially give the company a “second chance” at success.
MyMonii’s demise joins the growing number of smaller fintech start-ups that have failed to move forward profitably during an ongoing funding drought.