Generation Z credit card provider Deserve has scored $50m in debt financing from Keystone National Group.
The company raised the funding to aid the growth of its account receivables and with helping first-time credit owners.
Deserve is a credit card producer for Generation Z (18 29-year-olds), utilising machine learning to help decide a credit score and ensure people are offered fair credit products. The platform aims to help consumers that do not have a credit card get access to one, by using machine learning algorithms to predict credit potential, based on attributes including education, current financial health, and future employability.
There are two separate credit cards offered Edu, which is designed for college students and Pro, a card for those out of education.
The Edu card offers 1 per cent cash back on purchases, no annual fees or deposits. Its Pro card offers the 1 per cent cash back and no annual fees; however, it also gives holders 3 per cent on travel and entertainment and 2 per cent cash back from restaurants.
Deserve CEO and Founder Kalpesh Kapadia said, ?The strong initial response to our brand and high demand for our products validate the fact that Gen Z and millennials need access to fair credit products that allow them to build credit history and reward them along the way.
?This new credit facility will help us bring deserving consumers to the credit system who are often overlooked by the traditional approach and allow them to pave their path to financial independence.p>
This financing comes shortly after the company raised $12m in an investment led by Accel late last year. Other participants to the round including Aspect Ventures, Pelion Ventures, Mission Holdings, Alumni Venture Group, and GDP Venture.
Capital from the previous round was used for launching its credit card services Edu and Pro, as well as expanding its customer base to include all 40 million college students and young people in the US, according to the company.
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