Crossborder neobank Zolve secured $100 million in warehouse debt funding from US-based impact investor Community Investment Management (CIM). They plan to use this capital to provide credit products to immigrants, particularly Indians relocating to the US.
Zolve also plans to expand its services for immigrants moving to the UK, Canada, and Australia.
Zolve, founded in 2021 by Raghunandan G, offers immigrant-friendly services like FDIC-insured US bank accounts and credit cards without the need for a social security number in the United States.
“In the quarters ahead, we’re set to broaden our horizons. Our journey has just begun, and we aspire to extend our reach, offering a bouquet of inclusive financial services that elevate the financial experience for all,” said Raghunandan G.
Since its inception, the company has onboarded nearly 500,000 users and processed over $600 million in transactions. Their 12-month customer retention rate is over 86%.
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.”
In October 2021, the startup raised $40 million in a Series A round led by DST Global, bringing their total equity and debt financing to $155 million. This $100 million debt funding round is a significant achievement for an Indian-origin company in 2023, following the footsteps of neobank Stashfin, which also secured $100 million in debt earlier this year.
Other notable companies in this category include Byju’s, Mensa Brands, Leverage Edu, Rebel Foods, Lendingkart, and Bhavish Aggarwal’s new venture, Krutrim SI Designs.
“Zolve has achieved remarkable growth within only two years of operations while ensuring profitable unit economics amidst a challenging global macro environment,” stated Anand Daniel, Partner at Accel, one of Zolve’s early investors.
