Online banking platform Zero Financial has closed its Series A on $20m, enabling it to deploy its solution to over 200,000 more people.
New Enterprise Associates (NEA), an American venture capital firm, led the funding round. This investment brings the company total equity and debt funding up to $35m, with a list of backers including SignalFire, Eniac Ventures, Nyca Partners, and Silicon Valley Bank.
The company launched its digital banking and credit card services late last year. Funds from the round will be used to release its platform to more than 200 people on its waitlist.
San Francisco-headquartered Zero provides consumers with a mobile-based checking account and a credit card. The Zerocard is a world MasterCard and aims to give users more cash back.
Initially, a consumer begins with a Quartz level card which earns them 1 per cent cash back on purchases. If they refer a friend, they are upgraded to a Graphite card, but if two friends join up, they receive a solid-metal Magnesium card. These cards boast a 1.5 per cent and 2 per cent cash back, respectively.
If the user is able to refer four friends, they are eligible for the top-level card, the Carbon Zerocard, netting them 3 per cent cash back on all spending.
NEA partner Rick Yang said, “Few people understand how complex it is to launch a credit card or a checking account program.
“Zero is the first US startup to launch a fully integrated and elegantly designed product with both from scratch. Importantly, Zero gives consumers the ability to fully control and understand their own spend, without compromising on rewards ?? something that traditional account options have failed to provide.”
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