Zero Financial, a US startup that offers a checking account and rewards credit card that operates like a debit card, has closed a $20 million Series A financing round, led by New Enterprise Associates (NEA).
The latest investment brings its total equity and debt funding to date to $35 million. Previous backers include SignalFire, Eniac Ventures, Nyca Partners, and Silicon Valley Bank.
The Mastercard-based Zerocard is combined with an FDIC-insured checking account called Zero Checking, with transactions from both displayed in a mobile app, allowing cardholders to see one net number they can spend from. Transactions in the app are enhanced with logos and maps, making it easy to recognise purchases.
"If you're someone who spends $30,000 a year and maintains an average of $30,000 in deposits, you'll earn $0 in cash back and interest with a typical debit card and non-interest bearing checking account, and $1,425 a year with your Zerocard Carbon," says Joel Washington, founder & COO of Zero. "And it takes just a few minutes to sign up."
Launched as a small beta programme in November, the firm says the new funding will be used to ramp up the onboarding process for the 200,000+ customers on its waiting list.