Katrin Kaurov’s early experience as a financially independent teen model, combined with Aleksandra Medina’s similar financial acumen fostered during her stint at NYU Abu Dhabi, led them to co-found Frich. Recognizing the absence of a platform dedicated to candid financial conversations for their age group, the duo embarked on creating Frich in 2021—a startup headquartered in New York City focused on building a social financial community for Gen Z.
The pair emphasizes that Gen Z craves authenticity and is exhausted by social media’s unrealistic depictions of financial prosperity. “There’s a stark disconnect between the idealized financial images on social media and the actual financial status and needs of Gen Z,” Kaurov told TechCrunch. “We realized many young people are clueless about handling finances and merely pretend otherwise online.”
Frich, an abbreviation of “Effing Rich,” enables users to pose anonymous questions to gain insights into their peers’ financial standings without the pressure of competition. This includes anonymously sharing financial data to benchmark incomes and spending in areas such as entertainment, investments, and housing. For instance, a freshman can compare expenses with peers from similar backgrounds, or inquire about typical investment habits and whether their classmates receive allowances.
“Gen Z’s willingness to discuss finances sets them apart,” noted Kaurov. “They seek transparency about actual spending habits, credit scores, and financial behaviors, including how much people spend on first dates.”
Frich not only serves as a platform for open financial dialogue but also utilizes user data to connect them with pertinent financial brands. “Frich is fundamentally a community-driven money app,” Medina explained. “Our tailored approach addresses the financial industry’s oversight of Gen Z, helping us match users with suitable brands and services based on their financial behaviors.” The objective, Medina adds, is to anticipate Gen Z’s needs before they even arise.
Since its launch in the summer of 2021, Frich has amassed over 100,000 users nationwide, focusing mainly on markets in New York, Florida, and Texas. The startup is nearing $1 million in annual recurring revenue (ARR) with its B2B subscription model.
Monetization for Frich relies on partnerships with financial institutions and various brands, which pay a variable flat fee to participate on the platform.
In a noteworthy marketing strategy, Frich combines campus visits and ambassador programs with digital promotions on platforms like TikTok.
Recently, Frich secured $2.8 million in seed funding, led by Restive Ventures with participation from TruStage, K20, and Spartan Innovations. The funding is aimed at expanding the team, including hiring key personnel like a growth leader from Bumble and a product expert from Robinhood.
Cameron Peake, a partner at Restive Ventures, lauded Frich’s understanding of Gen Z’s financial perspectives. “Their frequent polling and engagement with users to clarify financial realities impressed us,” Peake mentioned. “The extensive consumer market presents significant growth potential.”
Frich faces competition from other fintech companies targeting Gen Z. Alinea Invest raised $3.4 million in January for its AI-powered wealth management services aimed at Gen Z women. Bloom, another fintech startup, hit one million downloads shortly after launching its commission-free stock investing tool for teens. Meanwhile, Onyx Private, a Miami-based digital bank, pivoted to a B2B model despite earlier targeting high-earning millennials and Gen Zers.
Kaurov and Medina are leveraging their extensive industry knowledge and innovative app to revolutionize Gen Z’s approach to financial wellness, aiming for long-term success and realistic financial understanding among young individuals.
