Bengaluru-based neobanking startup Zolve on Wednesday said it has secured a warehouse debt facility of up to $100 million from San Francisco-based investment firm Community Investment Management (CIM).
A warehouse debt facility is a loan given against the borrower’s inventory as collateral.
Zolve provides immigrants bound for the US access to bank accounts that are insured by the Federal Deposit Insurance Corporation (FDIC), besides credit and debit cards based on their home country’s credit score, without the need for a social security number or US credit history.
The new funding will be used to cater to offering credit products to migrants in the US, especially for Indians migrating to the US, the firm said.
The company said it is also poised for further expansion. Geographically, the UK, Canada, and Australia top the list, given their popularity among Indian immigrants.
Since its inception in August 2021, Zolve claims to have attracted around 500,000 users, facilitating transactions worth more than $600 million.
“Zolve has achieved remarkable growth within only two years of operations while ensuring profitable unit economics amidst a challenging global macro environment” Anand Daniel, partner at Accel, one of Zolve’s early investors, said in a statement.
In Oct 2021, the company raised $40 million in a Series A funding round led by partners of DST Global at a valuation of $210 million. That round came seven months after the startup raised a seed round of $15 million, which saw the participation of Accel, Lightspeed Venture Partners, and a host of other investors.