TomoCredit, a US startup creating a credit card to help first-time borrowers build credit history, has secured $22m from a Series B financing raise.
The round was backed by Mastercard and Morgan Stanley’s Next Level Fund as well as participation from Asian Hustle Network, Hyphen Capital and GoldHouse. TomoCredit recently secured $100m in debt financing from Silicon Valley Bank.
TomoCredit is attempting to target the 40 million credit-invisible immigrants and international students that currently hold no credit history in the US.
TomoCredit’s underwriting algorithm identifies high potential borrowers without a credit score and then offers a credit card that requires no credit check, no deposit, no APR and no fees.
With the new funding, the firm is planning to expand into auto loans and mortgages.
TomoCredit CEO Kristy Kim said, “As a first-generation South Korean immigrant, I wanted to help immigrant communities to reach their American Dream faster with TomoCredit.”
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