American fintech Credit Sesame has raised $51 million in growth capital and acquired rent reporting platform Zingo.
Credit Sesame began life as a tool to help Americans access and boost their credit scores, winning over 15 million members. However, it has since diversified, developing a digital debit account, called Sesame Cash, to help customers grow their cash and credit together in one place.
Having signed up more than a million users to the account in less than a year, the firm is now preparing to continue its product expansion. The acquisition of Zingo will see Credit Sesame integrate rent reporting services into its suite this summer. Nearly 80% of the company's 15 million members are renters, who can now have their payments collected, verified, and reported to credit bureaus.
Later this year another new feature will launch, enabling consumers to use their cash to help them build and enhance their credit profile with no credit check.
Adrian Nazari, CEO, Credit Sesame, says: "Creating access to better credit and finance is critical for financial prosperity for consumers in our country, and it's enlightening to see major banks and the federal government also taking action.
"The impacts of the past year have only made those needs greater, and through our recent acquisition and fundraising, we are proud to be expanding our platform offerings and leading the charge in opening more doors to financial inclusion and wellness for all."
The funding round was joined by Healthcare of Ontario Pension Plan, Menlo Ventures, ATW Partners, Globespan Capital, IA Capital Group, Inventus Capital, and more.