Self Financial, a fintech startup promising to help Americans build their credit while also saving money, has raised $40 million in a Series D funding round led by Meritech Capital.
Altos Ventures, Conductive Ventures and Silverton Partners, joined the round, which brings Self's total funding to $77 million.
Self is one of several startups taking aim at the nearly 100 million Americans who have a credit score of 600 or lower or are unscoreable because of a lack of information.
The firm's credit builder account lets people with poor or no credit history apply for a small loan with a bank partner that is held on a Certificate of Deposit (CD). Users then make monthly payments which are reported to the three major credit bureaus. At the end of the term, the CD matures and unlocks with the principal amount coming back to the customer.
Recently, Self introduced a secured credit card that does not require a credit check and lets customers build their security deposit in instalments.
The company has had a strong 2020, seeing its active customer base rise 250% and its employee count increase from 50 to 115.
James Garvey, CEO, Self, says: "Despite increased adversity, this year we’ve seen demand for our products increase as people look to get control of their finances where possible. Fortunately, we also see our customers keeping their commitment to themselves by sticking to their plans.
"The latest infusion of capital from Meritech and our other investors means that Self can continue its mission to support our customers on their journey to build credit and savings and be financially healthy."
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