Financial health startup SeedFi has netted $65m in a new funding round, which was comprised of $15m in equity and $50m in debt.
The equity was part of the FinTech’s Series A round, which was led by Andreessen Horowitz and supported by Flourish, Core Innovation Capital and Quiet Capital.
As part of the deal, Andreessen Horowitz general partner Angela Strange will join the SeedFi board of directors. Furthermore, Flourish Ventures managing partner Emmalyn Shaw will join the board as an observer.
The fresh capital will be used to deepen its product suite and grow its customer base.
SeedFi aims to help Americans build credit, save money, access funds and plan for their future. The company has initially launched with two products.
Its first solution is the Credit Builder Plan, which helps consumers to build healthy long-term savings habits. Customers can save as little as $10 from each pay check, which is reported to the credit bureaus to build their credit history.
The other launch product is its Borrow & Grow Plan, which it claims to be the first and only digital financial product that gives immediate access to funds while helping customers build savings and credit.
SeedFi co-founder and CEO Jim McGinley said, “We’ve seen first-hand how the system has been designed for underprivileged Americans to fail.
“Our average customer earns $50K a year, yet they pay $460 a year in overdraft fees and payday loan companies charge them APRs of 400% or more. They barely make enough to cover their expenses and any misstep can set them back for years.
“Our goal is to address the root cause of the problem and leave our customers better off than we found them, so we’ve structured all of our products to generate savings and build credit. The end goal is to help alleviate that stress and allow people to make progress towards a better future.”
Seed Fi launched in private beta in 2019.
With the close of the round, the FinTech has raised a total of $69m in funding.
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