US-based digital banking platform Oxygen has raked in $17m in Series A funding round to build a modern banking platform and accelerate its growth.

The funding round was led by Runa Capital and joined by S7V, 1984.vc, EFG Hermes, Rucker Park, and Inventures.

Additionally, fintech investors including Deutsche Bank global CEO of private & commercial bank Frank Strauss, Plaid’s William Hockey, Ankur Nagpal, Peter Treadway, and Larry Fitzgerald also participated in the funding round.

Launched in January 2020, Oxygen provides both consumers and small businesses (SMBs) with access to modern banking solutions.

It has over 125,000 active accounts, that come with no minimum balance or monthly fees, and are FDIC-insured in partnership with The Bancorp Bank.

Oxygen also provides a Visa debit card that offers cash back rewards on everyday purchases at participating merchants.

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The neobank will use the fresh capital to grow its team and build banking products for consumers and SMBs.

Oxygen CEO Hussein Ahmed said: “This investment not only validates what we have built but also enables us to continue pursuing our vision of building financial tools that integrate seamlessly with the digital world of today and delight our customers.

“We founded Oxygen because we wanted to provide financial services in the same way people interact with technology in their everyday lives.”

In May 2020, Oxygen launched a new app-based digital banking solution to cater to the needs of freelancers and digital natives.

The Oxygen app incorporates tools like LLC creation, expense management, and the ability to manage both personal and business finances.

In the same month, US-based card manufacturer CPI Card Group partnered with Oxygen to deliver debit cards to freelancers and self-employed clients.

Oxygen also joined the payment giant Visa’s Fintech Fastrack programme.