American challenger bank Dave has received a $100m credit facility from Victory Park Capital.
The capital injection will support the growth of its product development and its expansion of its service offering.
Last year, the FinTech launched its Dave Banking solution, a spending account and debit card with no monthly fees.
Dave was launched in 2017 with the aim of helping consumers avoid overdraft fees. Since then, the company claims to have become the third most valuable challenger bank in the US. It is not clear what Dave’s valuation is.
Its app enables over eight million customers set budgets, avoid overdraft fees, build credits and make savings.
VPC partner Jason Brown said, “We look forward to our continued partnership with Dave as the company enters its next phase of growth and progresses in its journey to make banking more accessible.
“Dave has amassed millions of loyal members by helping solve simple pain points like overdraft protection and automated budgeting, all while giving back to the community, and we are confident that the company will continue to be a significant challenger to traditional financial institutions.”
In 2020, Chime became the US’ most valuable consumer-focused FinTech company after a $485m Series F round put its valuation at $14.5bn. The challenger bank witnessed a 900% growth over 18 months, rising from a valuation of $1.9bn.
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