College savings app UNest, based in North Hollywood, announced Wednesday it has acquired Littlefund, another money gifting and savings app.
The companies did not disclose terms of the acquisition.
UNest, which occupies a WeWork space in North Hollywood, is developing an app that helps users set up and manage 529 tax-advantaged college savings plans on their mobile phones. The company hopes to shorten and simplify the application process for opening a 529 account, making it easier for families to save for their children’s education.
According to a statement from UNest, acquiring Littlefund will accelerate the company’s growth by doubling the app’s user base to more than 60,000 people. It also adds features, such as gifting, to UNest’s Android and iOS apps.
Littlefund founders Mimi Chan and Isaac Dressman will join UNest as head of experience and head of research and development, respectively.
UNest Chief Executive Ksenia Yudina said in a statement that Littlefund was a natural fit to join her company.
“Our teams share the same values and there is a lot of synergy in terms of vision and demographics. Both are applying a modern, technology-driven approach to making financial solutions more affordable, accessible, and user-friendly for a new generation of parents,” she said.
She added Littlefund will provide a simple, integrated way for family and friends to send gifts to a child’s UNest account.
UNest recently made headlines after closing an oversubscribed Series A funding round at $9 million. Investors include Northwestern Mutual Future Ventures and retired NBA All-Star player Baron Davis.