FinTech Koyo has raised $4.9m to expand upon its open banking-powered credit checking service

Koyo, a FinTech startup specialising in open banking solutions, has closed a $4.9m funding round led by Forward partners, the venture capital firm.

Other investors participating in the round included Seedcamp as well as angel investors, according to TechCrunch. The round was based on a mixture and debt and equity funding.

The FinTech is set up to provide credit for people who usually struggle to get it due to reasons like being immigrants or not being the main bill payer in their households.

“If someone is new to the country or otherwise has a thin credit file, it can be difficult for that person to access credit,” Thomas Olszewski, founder of Koyo, told TechCrunch. “For example, if you’ve been in the country for a year or two and you’d like to get a personal loan, the types of loans that would be offered to you would be payday loans (1,000%+ APRs) or longer-term loans in the 50-99% APR range that may require a guarantor.”

Koyo solve this issue by making their customers connect their accounts to the Koyo platform. That enables the company to make a credit decision based on the transactions on the account.

Forward Partners has previously supported payment solution platform APEXX by leading its $4m funding round back in 2017.

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