The debt funding will be utilised to offer credit products to immigrants (especially Indians) moving to the US
Crossborder neobank Zolve has secured a warehouse debt facility of $100 Mn from US-based impact investor Community Investment Management (CIM), reported inc42.com.
The debt funding will be utilised to offer credit products to immigrants (especially Indians) moving to the US. The capital will also be used to expand operations and offer a bouquet of financial services for immigrants moving to the UK, Canada and Australia.
The funding will also be deployed to scale its products to individuals from a ‘multitude of geographical locations and demographic backgrounds.’
Commenting on the announcement, managing partner at CIM Jacob Haar added, “We are excited to be early supporters of Zolve’s vision to provide a comprehensive financial solution to the global immigrant community in the US… In only two years of operations, Zolve has achieved remarkable growth within this creditworthy but underserved segment of the market and we are pleased to partner with Raghunandan and his team.”
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The emergence of neobanks has changed the game with offerings such as travel-friendly Debit+FX cards, automated processes, and transparent products
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This has led to a rise in the popularity of neobanks even as these fintech platforms look for monetisable use cases to build innovative solutions
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As per a report, the homegrown neobanking market is projected to soar to a market size of $183 Mn by 2030
Founded in 2021 by serial entrepreneur and TaxiForSure cofounder Raghunandan G, Zolve touts itself as a cross-border neobanking startup that offers immigrants an FDIC-insured US bank account and a credit card without the need for a social security number in the United States.
The platform largely targets Indians immigrating to the US as more than 4 Mn local citizens migrate overseas every year for higher education or career opportunities. As per Zolve, this represents $100 Bn in annual spending by the Indian diaspora. It is this niche that the startup is looking to solve with products ranging from remittance solutions to insurance plans.
It has so far onboarded nearly 5 Lakh users since its inception and has facilitated transactions worth more than $600 Mn. Zolve claims its 12-month customer retention rate stands at more than 86%.
The startup last raised $40 Mn as part of a Series A funding round led by DST Global. Zolve has bagged $55 Mn in equity funding since its inception and now has access to a $100 Mn debt funding.
Zolve’s investor Accel’s partner Anand Daniel claims that the startup is delivering profitable unit economics while achieving remarkable growth.
As India’s outbound travel increases, the dependence on run-of-the-mill traditional avenues such as credit cards, debit cards and forex cards or even External Rupee Accounts to send and spend money seems to be passé.
The emergence of neobanks has changed the game with offerings such as travel-friendly Debit+FX cards, automated processes, and transparent products. This has led to a rise in the popularity of neobanks even as these fintech platforms look for monetisable use cases to build innovative solutions.
As per a report, the homegrown neobanking market is projected to soar to a market size of $183 Mn by 2030.
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