Stoa raises £1.8mn to build perks-based savings products

Stoa, a UK savings technology start-up, has raised £1.8mn in pre-seed funding in a round co-led by Bespokeist Partners and Ingenii Capital. The company is using the capital to develop savings products that offer customers upfront benefits for committing idle cash for a set period, rather than relying only on interest paid over time.

The model is designed to connect savers, regulated deposit providers and merchants. Customers place cash into fixed-term deposit products and receive everyday perks from merchant partners when they commit the funds, according to Stoa.

Stoa says the approach is intended to create a new category in savings, based on immediate tangible rewards rather than nominal interest accumulation alone. The company is targeting both consumers and businesses with idle cash balances.

How the product works

Stoa’s deposit technology, called Stoa Pots, is built around what the company describes as a “save-to-get-perks” structure. Under that arrangement, a customer locks money away for a defined term and gains access to benefits from merchants on the platform at the start of the relationship.

The deposit remains part of regulated banking infrastructure, Stoa says, with eligible deposits protected through that framework. The company has not detailed the terms of the deposits, the duration of the fixed commitments or the specific perks that will be offered by merchants.

The commercial logic spans several groups. Stoa says financial institutions can use the product to attract larger deposits for longer periods. Merchants, according to the company, can use the arrangement to support customer retention, build loyalty and reduce reliance on card-processing fees.

Distribution talks with banks and brands

Stoa says it is in advanced discussions with multiple flagship brands, well-known banks and building societies about distributing its products. Those discussions cover both Stoa Pots and Saving Score, a tool the company describes as the world’s first score focused on saving behaviour.

Saving Score is intended to track how customers save, rather than how they borrow. Stoa has not disclosed how the score is calculated, how it will be used by partner institutions or whether it will feed into product eligibility.

The company has also added John Mountain, former chief executive and co-founder of Starling Bank, as an adviser. Stoa says Mountain will support product development and expansion across financial institution and merchant channels.

Mike Saraswat, Stoa’s co-founder and chief executive, said the company sees cash management as moving beyond interest-rate comparison toward greater customer choice and clearer value. He said the platform is designed to reward customers upfront while keeping eligible deposits within regulated banking infrastructure.

This story draws on original reporting from Finextra Research.