US-based financial wellness platform Credit Sesame has secured $51m in financing from several investors to support its growth plans.
Participants in the fundraising include Healthcare of Ontario Pension Plan (HOOPP), Menlo Ventures, ATW Partners, Globespan Capital, IA Capital Group, and Inventus Capital.
HOOPP VP, Credit, Shrirang Apte said: “This investment in the fast-growing Credit Sesame was an attractive opportunity to help grow the HOOPP fund for the benefit of our members, so we are pleased to contribute to Credit Sesame’s next phase of growth as it continues to expand.”
Credit Sesame will utilise the capital to offer AI-driven services to help people get easy access to credit and free banking services.
By doing this, the company aims to close the credit gap that impacts over 44 million ‘credit invisible’ Americans.
As an initial step towards meeting this goal, the company finalised the acquisition of fintech software services startup Zingo.
The deal allows adds rent reporting services to Credit Sesame, around 80% of whose 15 million members are renters.
The financial wellness platform will use Zingo’s intelligent data platform to collect, verify, and report rental payments to the credit bureaus to enable consumers to build and improve their credit.
Moreover, Credit Sesame will roll out a feature later this year, enabling consumers to use their cash to help them build and improve their credit profile with no credit check.
Credit Sesame CEO Adrian Nazari said: “Creating access to better credit and finance is critical for financial prosperity for consumers in our country, and it’s enlightening to see major banks and the federal government also taking action.”
Last year, Credit Sesame acquired Canadian challenger bank STACK as part of its strategy to expand internationally.