San Francisco-based fintech startup Bright Money has raised $62 million in a mix of debt financing and equity infusion from new as well existing investors.
While new investor Encina Lender Finance provided a debt of $50 million, existing investors Alpha Wave Global, Peak XV (erstwhile Sequoia India) and Hummingbird VC collectively infused $12 million in follow-on bets.
This investment is poised to help Bright Money build its presence amongst millennials in the US, according to a statement.
“We have seen a 6x growth in the last year and now reach hundreds of thousands of users,” said Avi Patchava, co-founder and co-chief executive officer at Bright Money.
Founded by Patchava, Petko Plachkov, Varun Modi, Avinash Ramakanth, Jay Merwade and Amit Bendale, Bright Money focusses on personal lending and credit cards.
Its tools include credit score building, automated debt paydown plans, financial, budget planning and refinancing loans.
In 2021, Bright Money raised $31 million in a Series A round from Peak XV, Alpha Wave Global and Hummingbird Ventures. It was also part of the first cohort of Peak XV’s Surge programme and counts the likes of InMobi founders Naveen Tewari and Abhay Singhal, Cred’s Kunal Shah, Jupiter’s Jitendra Gupta, Ram Shriram of Sherpalo Ventures and Ram Pandit, as its angel investors.
Bright Money currently has a team of around 180 employees with much of its team operating from India while a smaller team is present in the US as well.
In 2022, VCCircle reported the startup had laid off close to 100 people or 50% of its workforce. The startup, however, stated that 29% of its team or 46 employees had been handed the pink slip as part of a restructuring exercise.
