Deserve, a venture-backed credit card fintech based in Silicon Valley, has raised $50m in a new round of Series C funding led by American investment banking company Goldman Sachs with participation by existing backers Sallie Mae, Accel, Aspect Ventures, Pelion Venture Partners and Mission Holdings.
The fintech company offers credit cards directly to non-traditional consumers with little credit history, especially younger consumers, by using a cloud-based platform.
The platform uses machine learning and alternative data to determine the consumers’ creditworthiness.
The company also sells the platform to corporations to offer their branded cards.
Deserve said that it will use the funding to develop the Card as a Service (CaaS) platform that facilitates businesses, brands and others to offer custom credit card products.
The company also intends to use the funding to expand its B2B sales and marketing division.
Deserve claims that its API-based Deserve Credit Platform will provide customers with the ability to set up a programme in three months, instead of 18 to 24 months.
Using the programme, consumers can quickly apply for credit from their mobile phones and get approval in minutes.
The credit card programme also includes financial education and other features such as cashback rewards as well as incentive programmes Prime Student from Amazon, cellphone protection from Mastercard, and airport lounges from Priority Pass.
Deserve CEO and co-founder Kalpesh Kapadia was quoted by CNBC as saying: “Deserve empowers organizations of all kinds – from major financial institutions to consumer brands to universities – to offer customized branded credit cards with tailored rewards for their customers that in turn incentivize loyalty or other user behaviors.
“Our API-centric approach means the platform is highly scalable and can be deployed on an advanced timeframe. It allows us to offer a seamless digital onboarding process for cardholders – a simple process for businesses and consumers alike.”
Deserve develops, deploys and powers white-label and co-branded credit card programmes through partnerships with universities, financial institutions, associations, fintechs and consumer brands.
Goldman Sachs managing director Ashwin Gupta said: “We believe Deserve’s card platform will bring meaningful savings and new opportunities to institutions across a range of verticals.”
The latest funding brings the total amount raised by Deserve to around $100m.