Automated debt manager Tally has closed its Series B round on $25m, with Kleiner Perkins acting as the lead backer.
Existing backers Shasta Ventures, Cowboy Ventures and Sway Ventures also made contributions to the series. As part of the funding, Kleiner general partner Mamoon Hamid will join Tally’s board of directors.
Founded in 2015, the company analyses a user’s financial profile to identify the best way to pay down their credit card debt. This is achieved through two steps, the first being a line of credit with a lower interest rate given by Tally to the consumer. Following this, it helps users better manage their payments and ensure cards are always paid on time.
The app uses its own underwriting and financing models which let it to provide the lower rates. Since the launch of the app in October 2017, the company has helped users save millions of dollars in interest.
Tally hopes to use this capital to scale its business to help more Americans remove their credit card debt.
Tally CEO and co-founder Jason Brown said, “Credit card debt is a huge source of stress for over half of American households — it’s the most widespread financial issue in the country with nearly half of Americans contributing to the $1 trillion record-high debt load.
“We are excited to get the backing of the Kleiner team to improve the quality of life for the huge population of people worrying day in and day out about managing and trying to reduce their debt.”
Earlier in the year, Kleiner made a lead investment to the £20m Series B of e-commerce platform developer BorderX. The firm also took part in the $78m investment round of IronNet Cybersecurity, a product developer to lower cyber risk and protect nations and industries from advanced attacks.
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