Grow Credit raises $106m to expand subscription-based credit builder
Santa Monica-based and black-owned fintech firm Grow Credit has raised $106 million in a seed funding round.
The round consists of $6.3 million in equity financing from a selection of investors and $100 million in debt financing from Arena Investors.
Among the investors are Marqeta CEO Jason Gardner, DraftKings CEO Jason Robins, NBA All-Star Baron Davis, and Matt Higgins, vice-chair of the Miami Dolphins.
Grow Credit aims to help consumers use their subscription payments – to firms like Spotify and Netflix – to build credit.
The firm will use its new funds to spur a user acquisition spree, according to CEO and founder Joe Bayen.
It is looking to embed its user experience across banks, apps, and websites. It says partners can monetise their audiences through financial inclusivity.
Grow Credit launched its platform on November 2020, and counts Blue Ridge Bank, Sutton Bank, and MRV Banks among its customer base.
It plans to increase its influencer investor base in particular going forward, as the firm plans to accrue 100 million end consumers.
“I have been a financial literacy advocate for years,” says NBA star Baron Davis. He adds that he is “thrilled” to be part of a platform helping inner-city youth start building credit.