Current, a fintech startup focused on everyday Americans, just raised $80 million in a Series E round. This funding values the company at $1.5 billion. That’s down from its $2.2 billion peak in 2021. Despite the lower valuation, the company’s growth tells a different story.

For the third year in a row, Current grew its revenue by more than 70%. It also says it is moving into profitability this year. The startup serves millions of users, offering tools that help with cash flow, savings, and credit building. It’s not a bank itself but partners with banks like Cross River to hold deposits.

Strong Growth Meets Market Reality

Current’s journey shows how fintech valuations have changed since the pandemic. Back in 2021, money was cheap and fintech startups saw soaring prices. Current’s valuation jumped quickly from $750 million in 2020 to $2.2 billion in 2021. But as interest rates rose and markets reset, valuations cooled down.

Now, the company’s $1.5 billion valuation reflects a more cautious market. Investors want to see profits, not just growth. Current has adapted by focusing on solid unit economics and preparing for a public listing. Its CEO, Stuart Sopp, is clear that the company is building for the long term.

Investing in AI and Product Expansion

The new capital will help Current expand its offerings. It plans to invest in AI-powered financial products. The team measures AI spending by the “return on tokens,” tracking how much value each AI dollar brings. This careful approach helps control costs while improving services.

Alongside AI, Current is growing its banking, payments, liquidity, and credit products. It deepened its partnerships with Cross River and General Catalyst to boost lending capacity. This support helps Current meet rising customer demand for digital financial tools.

Current’s platform targets Americans living paycheck to paycheck, a group often underserved by traditional banks. The app provides early wage access, savings tools, and a secured card to build credit. These features aim to improve financial outcomes for millions.

Ready for the Public Markets

This funding round looks like a final step before an IPO. Springcoast Partners led the investment and joined the board. Other backers include Andreessen Horowitz, Tiger Global, and QED Investors. These firms expect Current to deliver solid returns as a public company.

Current joins a crowded field of fintechs preparing to go public. Some, like Klarna, are expanding into banking in the U.S. Others, like Monzo, have retreated from U.S. markets to focus elsewhere. Investors now prioritize neobanks that can prove durable profits, not just fast growth.

The big question is whether Current can continue growing while maintaining profitability. Its 70% yearly revenue gain and improved lending business make a strong case. But the lower valuation signals investors will closely watch earnings, not just potential.

For now, Current’s focus remains clear: build technology that truly helps users manage their money. If it succeeds, it could carve out a lasting spot in the competitive fintech world.