Cross-border neobanking startup Zolve on Wednesday said that it has raised a warehouse debt facility of $100 million from US-based impact investor Community Investment Management (CIM).
Zolve, which has offices in San Francisco and Bengaluru, plans to use the debt facility to offer credit products to migrants in the US.
“With the recent capital we've raised, we move closer to realizing a world where access to essential financial resources transcends borders and backgrounds," said Raghunandan G, founder of Zolve.
Earlier in 2021, Zolve raised $40 million (Rs 300 crore) as a paert of its Series A funding round led by partners of DST Global, along with participation from Tiger Global, Alkeon Capital, as well as existing investors Accel and Lightspeed Venture Partners. It was valued at at $210 million (Rs 1,575 crore) in the last round.
Prior to founding Zolve in December 2020, Raghunandan had cofounded the cab aggregating platform TaxiForSure along with Koo cofounder Aprameya Radhakrishna. The company was sold to rival Ola for $200 million in 2015.
At Zolve, Raghunandan is trying to solve financial issues with immigrants. The company provides financial products such as bank accounts and credit cards to immigrants upon arrival. Its financial services let users start building a US credit history as soon as they arrive.
Zolve claims that since its inception in August 2021, the platform has attracted around 500,000 users and has facilitated transactions worth more than $600 million. It claims that its customer retention stands at more than 86% (12-month retention), and the organic and referral rate has now increased to above 62%.
“Zolve has achieved remarkable growth within only two years of operations while ensuring profitable unit economics amidst a challenging global macro environment” says Anand Daniel, partner at Accel, one of Zolve’s early investors.
