Self-financing, a fintech company that aims to help consumers build credit and savings at the same time, announced today that it has raised $ 50 million in Series E funding.
Altos Ventures led the financing, which also had the participation of Meritech Capital and Driving companies and brings the Austin-based startup’s total raised to $ 127 million since its inception in 2015.
The company, like many fintechs these days, aims to make credit and savings creation more accessible, regardless of a person’s financial history. It doesn’t require a full credit check to get started.
“We have focused on providing high-quality, low-cost products that help with general access to credit,” said Self founder and CEO James Garvey.
Today Self Financial has 200 employees, up from 80 at the beginning of this year. The startup, which was initially founded in California but moved to Austin after participating in the Techstars program in the city, plans to do more hires with its new capital.
Garvey declined to disclose specific revenue figures, saying only that Self will generate “nine figures” of revenue this year, roughly double compared to 2020. Self’s active customer base has more than doubled in the last 12 months. to about 1 million today. Over time, it has served more than 2 million customers.
The fintech’s flagship product, he said, are basically secured installment loans or small dollar loans with a deposit account that has a CD (certificate of deposit) attached.
After using that product successfully, customers can gain access to Self’s Visa credit card.
Image credits: Self-financing
Self’s Credit Builder products are issued through its three banking partners. But the company has built its own proprietary core technology platform that Garvey says “powers everything behind the scenes.” The company’s products are available through iOS and Android, as well as through a desktop application.
Starting this month, Self will allow people wIf you have an H-1B or L 1 work visa or student visa to open Credit Builder accounts, a move Garvey said “opens the door for more people who are new to the US credit system to participate.”
“We believe that everyone should have the opportunity to improve their financial future,” he added.
Part of Self’s long-term goals include entering the insurance market, as well as the planned launch of another product designed to help its clients access credit.
“The credit score is used for many things and in many states it is an important factor in determining the cost of auto insurance,” he said. “We are going to help our clients access auto insurance as one of the benefits of a higher credit score.”
The company plans to use its new capital to hire 50 to 100 people over the next 12 months, Garvey said. You recently appointed Kathleen Leonik as your Chief Compliance Officer. Previously, he held leadership positions at Juniper Bank, Barclaycard, and most recently Mercury Financial. He also worked in compliance at First USA, Bank One, and Chase.
Altos Ventures CEO Anthony Lee described Self as a pioneer in an increasingly crowded space. This week, TomoCredit, which has a similar goal of helping underrepresented consumers build a credit history, announced that it has raised $ 10 million. And last week, Varo Bank, the first U.S. neobank granted national banking status, raised a whopping $ 510 million in a Series E funding round at a valuation of $ 2.5 billion.
“James and his team at Self have had a clear mission from day one: to generate credit and savings for millions of Americans who are marginalized by the mainstream financial system,” Lee said. “It is a mission that will take decades to accomplish and we are happy to be there for the journey.”
For Silverton Partners CEO Morgan Flager, who participated in the AD rounds of the Self’s Series, Garvey’s passion has been key to his repeated investments in the company.
“When you have a founder with a clear and noble vision to solve such a big critical problem, it’s hard to say no as an investor, âhe told TechCrunch.
The firm was also drawn to Self’s mission to “lift” high-risk consumers.
“Many of the offerings aimed at high-risk consumers are expensive and restrictive,” he said. “Self Financial is unique in that it aims to break this cycle, rather than just benefit from it in a different way.”