Zolve, which provides banking services to immigrants in the US, has raised $100 million in warehouse debt facility from Community Investment Management, a US-based impact investor. The company plans to use the funds to offer credit products to its users.
Warehouse debt facility is a line of credit taken by loan issuers to offer loans to its borrowers. Based in San Francisco and Bengaluru, the platform now aims to expand its services to Indian immigrants in the UK, Canada and Australia.
“The number of Indians migrating abroad is increasing at a rapid pace annually and among the favoured destinations, US, Canada, and the United Kingdom stand out as prominent choices,” the company said in a statement. It noted that the Indian diaspora is the largest in the world at over 32 million.
Zolve primarily offers services such as a US checking account and credit cards to Indians migrating to the US for study or work and so far it has onboarded 500,000 users. Its accounts, debit and credit card are issued by Community Federal Savings Bank.
“Zolve’s primary offering is the US credit card product. Our 12-month customer retention for credit cards is at 85% and 62% of these signups come through organic and referrals,” the company said. By the end of this year, the company is targeting $75 million book on credit card receivables.
Founded by Raghunandan G in 2021, the platform has so far raised $55 million over two rounds and stands at a valuation of $210 million, as per Tracxn data. Among its investors, it counts Accel Partners, Tiger Global, Lightspeed and more. Raghunandan had previously founded TaxiForSure, an app-based cab aggregator that was bought by Ola and eventually shut down a year later.