Community Investment Management (CIM), a US-based impact investor, has provided a warehouse debt facility to cross-border neobank Zolve for the sum of $100 million.
The company stated in a statement that the debt financing will be used to provide credit products to immigrants moving to the US, particularly Indian immigrants. The money will also be used to expand operations and provide immigrants moving to the UK, Canada, and Australia with a wide range of financial services.
Raghunandan G founded Zolve in 2021 to provide immigrants with a credit card and an FDIC-insured US bank account without the need for an American social security number.
Since its launch, it has welcomed nearly 5000 users and enabled more than 600 million dollars’ worth of transactions. According to Zolve, its 12-month customer retention rate is over 86%.
In October 2021, DST Global led the startup’s Series A round, which brought in $40 million. To date, Zolve has received $155 million in debt and equity financing.
One of the largest debt rounds for a company with Indian roots will take place in 2023. Neobank Stashfin also accumulated $100 million in debt earlier this year. Byju’s, Mensa Brands, Leverage Edu, Rebel Foods, Lendingkart, and Bhavish Aggarwal’s newest business, Krutrim SI Designs, are also on the list.
