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Business News/ News / India/  Zolve snags $100 million debt facility from CIM

Zolve snags $100 million debt facility from CIM

Zolve, which has offices in San Francisco and Bengaluru, plans to use it to offer credit products to migrants in the US

Raghunandan G, founder of ZolvePremium
Raghunandan G, founder of Zolve

Cross-border neobanking startup Zolve said on Wednesday it has raised a warehouse debt facility of $100 million from US-based impact investor Community Investment Management (CIM). Zolve, which has offices in San Francisco and Bengaluru, plans to use the debt facility to offer credit products to migrants in the US.

“With the recent capital we've raised, we move closer to realizing a world where access to essential financial resources transcends borders and backgrounds," said Raghunandan G, founder of Zolve.

In October 2021, Zolve raised $40 million ( 300 crore) in a Series A funding round led by partners of DST Global, with participation from Tiger Global, Alkeon Capital, and existing investors Accel and Lightspeed Venture Partners. It was valued at at $210 million ( 1,575 crore) in that round.

Before founding Zolve in December 2020, Raghunandan had cofounded the cab aggregating platform TaxiForSure along with Koo cofounder Aprameya Radhakrishna. The company was sold to rival Ola for $200 million in 2015.

At Zolve, Raghunandan is trying to solve financial issues with immigrants. The company provides financial products such as bank accounts and credit cards to immigrants upon arrival. Its financial services let users start building a US credit history as soon as they arrive.

Zolve claims that since inception it has attracted around 500,000 users and facilitated transactions worth more than $600 million. It claims its 12-month customer retention is more than 86% and the organic and referral rate has now increased to above 62%.

“Zolve has achieved remarkable growth within only two years of operations while ensuring profitable unit economics amidst a challenging global macro environment" said Anand Daniel, partner at Accel, one of Zolve’s early investors.

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Published: 11 Oct 2023, 12:01 PM IST
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