Deserve will use the credit facility to address the demand for its mobile-centric, configurable credit card platform, from financial institutions, fintechs, and consumers
Deserve aims to expand its credit card platform. (Credit: Towfiqu barbhuiya on Unsplash)
US-based fintech company Deserve has obtained a new $250m credit facility from Goldman Sachs, Cross River, and Waterfall Asset Management, to expand its credit card offering.
The company intends to use the new funding to address the demand for its mobile-centric, configurable credit card platform, from financial institutions, fintechs, and consumers.
Last year, the fintech has launched its credit card platform for partners including BlockFi, M1 Finance, OppFi, Seneca Women, Notre Dame Global Partnerships, and KrowdFit, among others.
With the new funding, the company aims to expand its card programmes to help consumers manage subscriptions, integrate BNPL, and unlock their home equity, along with SMBs and commercial customers.
Deserve CEO and co-founder Kalpesh Kapadia said: “At Deserve, we’re committed to helping organisations quickly and securely launch any type of credit card product in the cloud, customised to their specific audience, a valuable touchpoint with customers and a must-have in today’s landscape of competitive brand loyalties.
“Because our platform is digital-first and mobile-centric, customers can, in turn, begin using their Deserve-powered credit card minutes after application, no plastic required.
“We’re excited about what this new financing will enable us to do as we amplify our reach and help more fintechs, financial institutions, SMB lenders, and brands connect with and grow their customer base.”
Deserve is a venture-backed fintech firm whose investors include Visa, Mastercard, Goldman Sachs Asset Management, Sallie Mae, Ally Ventures, Accel, Pelion Venture Partners, Aspect Ventures, and Mission Holdings.
The announcement of a $250m credit facility follows the company’s $50m Series D financing round, which closed in October last year.
The funding round was led by Mission Holdings, Goldman Sachs, and Sallie Mae with participation from Visa, Mastercard, and Ally Bank.
Deserve claimed that it has achieved 650% growth in transactions volume and 800% growth in receivables last year, and anticipates that the new loan facility will help scale its operations.
Cross River Bank strategic direct lending head Rahul Jha said: “We’re proud to support Deserve’s growth with our credit facility, and we’re excited to play a role in bringing a more modern and complete credit card experience to consumers nationwide through Deserve’s credit card as a service platform.”