Financial health startup SeedFi raises $65m [FinExtra]

Financial health startup SeedFi raises $65m [FinExtra]

Originally posted on FinExtra

SeedFi, a startup promising to help Americans build their credit and savings, has raised $15 million in equity and $50 million in debt.

Andreessen Horowitz led the round, with participation from Flourish, Core Innovation Capital, and Quiet Capital.

SeedFi is one of several fintech outfits targeting the huge swathe of Americans stuck in cycle of debt and with little or no savings.

It has built a credit building product that lets customers save as little as $10 from every paycheck, which is reported to the credit bureaus while also building some savings.

A separate ‘Borrow & Grow’ plan provides immediate access to funds while also helping customers build savings and credit, acting as a more affordable option than instalment or payday loans.

Launched in private beta in 2019, the company says that after six months it helped customers with no credit history establish a score of 600.

Jim McGinley, CEO, SeedFi, says: “Our goal is to address the root cause of the problem and leave our customers better off than we found them, so we’ve structured all of our products to generate savings and build credit.”