– Financial wellness leader surpasses one million Sesame Cash members
– Announces development of a first-of-its-kind feature that will allow consumers to use their cash to help them build credit faster
– Acquires rent reporting platform
– Delivers 200 percent annual growth for its premium services
Credit Sesame, a financial wellness platform, announced it has raised $51 million in growth capital to launch breakthrough AI-driven services that help millions gain easy access to credit and free banking services to reach their financial goals. The company enters this next phase of growth with significant business momentum, as it surpasses over one million Sesame Cash debit account customers in less than a year from the beta launch and exceeds 200 percent annual growth in premium subscription services.
The latest product and service innovations from Credit Sesame leverage its significant consumer data and AI and aim to help close the credit chasm, which affects more than 44 million Americans who are credit invisible and face significant challenges getting into the traditional credit and financial system.
As a first step to helping close this gap, Credit Sesame has completed the acquisition of Zingo, a fintech software services startup, enabling the company to integrate rent reporting services into its suite of financial wellness offerings in summer 2021. Nearly 80 percent of Credit Sesame’s 15 million members are renters, and this new offering unlocks a significant growth opportunity for the company and financial inclusion for its customers. Leveraging Zingo’s intelligent data platform, Credit Sesame will collect, verify, and report rental payments to the credit bureaus to help consumers establish credit and improve their credit profiles based on their consistent payment history.
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Later this year, Credit Sesame is launching a first-of-its-kind feature that will allow consumers to use their cash to help them build and enhance their credit profile with ease and no credit check. Consumers will have a unique opportunity to bring their cash and credit together to build a strong credit and financial foundation and see an actionable path leading to financial health and stability. This will open the doors to financial inclusion for millions struggling to enter the credit system for the first time, and will help others build credit faster.
“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,” said Adrian Nazari, CEO of Credit Sesame. “The impacts of the past year have only made those needs greater, and through our recent acquisition and fundraising, we are proud to be expanding our platform offerings and leading the charge in opening more doors to financial inclusion and wellness for all.”
The demand and market for a comprehensive financial wellness platform is significant. With the new additions to Credit Sesame’s services and insight into consumers’ credit and cash picture, the company will further optimize suggestions of relevant financial actions and instantly pre-qualify consumers for various products from over a hundred financial institutions within Credit Sesame’s expansive network.
With Credit Sesame’s expanding capabilities, the company has more than doubled its number of employees since 2018. The company is continuing to grow rapidly, especially in the areas of data science and engineering.
Investors of this financing round include Healthcare of Ontario Pension Plan (HOOPP), Menlo Ventures, ATW Partners, Globespan Capital, IA Capital Group, Inventus Capital, and more. This latest funding paves the way for the company’s rapid growth and expansion.
“Credit Sesame is giving consumers the latest financial tools and helping them to improve their financial health,” said Shrirang Apte, VP, Credit, HOOPP. “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 is operationally profitable, and this is the incremental funding needed to fuel its newest growth. The company’s success has been rooted in the value millions of consumers have been deriving from its free platform in recent years. Sixty-one percent of customers see their credit score improve within the first six months, 50 percent see their credit score improve by more than 10 points in their first six months, and 20 percent see their credit score improve more than 50 points in their first six months.
