TomoCredit, a credit card that helps first-time borrowers build a credit history, has collected $10m in its Series A round.
Kapor Capital and KB Investment served as the lead investors to the round, with additional support coming from Lewis & Clark Ventures.
With the fresh equity, TomoCredit will hire more staff members and bolster its offering. This development will include higher credit limits to customers.
The FinTech company is aimed at helping first-time borrowers build credit scores so they can access mortgages, auto loans and other types of financing. Its credit card is powered by Finicity, a subsidiary of Mastercard, and is a no-fee card with 0% APR. It claims to have pre-approved 300,000 customers and is hoping to issue 500,000 cards by the year end.
Recent research from TomoCredit claims that 76% of GenZ and millennials have not previously build credit history, impacting their chances to take out loans.
“As a South Korean immigrant, I understood the true pain point when I came to the US and couldn’t get qualified for an auto loan. I knew there must be a solution so with my co-founder Dmitry, we built TomoCredit centered around helping consumers build credit faster,” said Kristy Kim, co-founder of TomoCredit. “We believe we have the opportunity to not only foster a diverse and inclusive team but to break socioeconomic barriers and provide credit solutions to a much wider audience impacted by this issue. Currently we have a 50% female representation in our executive leadership team and we are proud of our inclusive culture here at Tomo,” said Kristy.
Alongside the deal, former American Express CRO Ash Gupta has joined TomoCredit’s board of directors.
TomoCredit previously raised $7m in a seed round.
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