Yendo, an innovative FinTech firm that introduced the world’s first vehicle-secured credit card, announced it has raised $24m in a Series A funding round.
The financing was led by FPV Ventures and received contributions from existing investors Human Capital and Autotech Ventures. This round of financing is a significant step forward for Yendo, the company that’s redefining credit offerings for millions of Americans who were previously alienated by the traditional financial system due to their credit scores.
Founded in 2021, Yendo aims to increase access to affordable credit for everyone, providing opportunities for people to achieve their financial goals. By using a car as collateral, Yendo customers can unlock up to $10,000 of revolving credit at a fixed, affordable rate, regardless of their credit history.
The company employs a unique model to determine a person’s credit limit, considering factors like income, expenses, and the value of their vehicle. This model has enabled many who were traditionally unable to access credit to start building their credit histories, a goal cited by 90% of Yendo’s customers.
With the freshly raised capital, Yendo intends to fuel its next growth phase. The funding will enable the company to recruit new talent, enhance the user experience of its product, and extend its services to more states. Wesley Chan, a representative from lead investor FPV Ventures, will also join Yendo’s board as part of the deal.
Jordan Miller, CEO and co-founder of Yendo, expressed his vision for the company’s future, “The current financial system is not set up to serve everyone. As a result, millions of Americans lack access to affordable lending options, leading many to rely on high-interest, non-bank financial products, which costs them billions of dollars annually.
“We want to transform the way Americans interact with financial services by building a product that can expand access to affordable credit, regardless of consumers’ credit scores. We’re confident this funding will help expedite our growth so we can continue to scale our business and product to help more people.”
Wesley Chan, co-founder & managing partner of FPV Ventures, also shared his excitement about the partnership, “We’re excited to partner with Jordan and the Yendo team. Jordan is a brilliant product developer who has created a product that provides access to affordable credit to a population of consumers who have historically had terrible lending options, if any. This helps level the playing field for consumers and we’re thrilled to back this mission and team.”
Since its inception, Yendo has already saved its customers over $85,000 in interest each day, and it’s experiencing a weekly customer base growth of 15%. The company is already developing a suite of financial products to further serve Americans who have been historically underserved by the current financial system.
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