Financial wellness platform Credit Sesame raises $51m to fuel expansion plans
US-based fintech Credit Sesame has raised $51 million to finance the next stage of its growth.
Investors involved in this latest financing round include Menlo Ventures, ATW Partners, Globespan Capital and IA Capital Group.
The financial wellness platform says the capital will be used to launch “breakthrough AI-driven services” that will help “credit invisible” customers get easy access to credit and free banking services.
Later this year, the fintech intends to launch a new feature that will allow consumers to use their cash to help them build and enhance their credit profile with no credit check.
Credit Sesame believes this will open the doors to financial inclusion for millions in the US struggling to enter the credit system for the first time, and will help others build credit faster.
The firm has attracted over one million Sesame Cash debit account customers in less than a year from its beta launch.
As well as the new financing, Credit Sesame has also completed the acquisition of Zingo, a fintech software services start-up, enabling the company to integrate rent reporting services into its suite of financial wellness offerings in summer 2021.
Leveraging Zingo’s intelligent data platform, Credit Sesame will collect, verify and report rental payments to credit bureaus to help consumers establish credit and improve their credit profiles.
“Creating access to better credit and finance is critical for financial prosperity for consumers in our country, and it’s enlightening to see major banks and the federal government also taking action,” says Adrian Nazari, CEO of Credit Sesame.
“The impacts of the past year have only made those needs greater, and through our recent acquisition and fundraising, we are proud to be expanding our platform offerings and leading the charge in opening more doors to financial inclusion and wellness for all.”