Neobank Zolve on Tuesday, March 11, announced that it raised $251 million in the latest round of debt and equity financing.
The mentioned fundraising process was led by the Indian private equity company Creaegis, an existing investor of the virtual lender. Names like HSBC and SBI Investment also participated in this process.
The latest round of financing of Zolve, based in Houston, Texas, has raised the neobank’s market capitalization to about $800 million. The relevant information was published by the media with reference to insiders.
It is worth noting that the mentioned fundraiser was held at a time when venture capital financing in the United States was at a low level. In India, the corresponding activity has recently shown significant growth.
Creaegis, which is headquartered in the southern Indian city of Bengaluru, led a previous round of funding for Zolve last year.
As part of the neobank’s activities, the main goal is to end credit problems for new entrants to the United States. In this case, it means people who have the status of borrowers with a high level of risk. Neobank helps them access financial services on their first day in the United States.
Zolve’s founder and chief executive officer Raghu Gangappa said when talented people move countries, their financial history is erased overnight. It was also noted that the digital lender is changing that by giving global citizens access to credit and banking from day one.
Zolve stated that the latest round of financing will allow it to expand its business. Neobank was launched in 2021. The digital lender currently serves more than 750,000 customers. Zolve plans to expand its operations into Canada, the United Kingdom, and Australia, and add sectors such as auto loans, personal loans, and education loans to its business portfolio.
As we have reported earlier, Bitwise Raises $70 Million.
