TomoCredit, the US startup behind a credit card designed to help first-time borrowers build credit history, has raised $22 million in a Series B funding round joined by Morgan Stanley's Next Level Fund and Mastercard.
GoldHouse, Asian Hustle network, and Hyphen Capital also joined the round, while Silicon Valley Bank has provided $100 million in debt financing.
Female, immigrant-founded TomoCredit is targeting the 40 million credit-invisible immigrants and international students with no credit history in the US.
Powered by Mastercard-owned open banking player Finicity, the firm's proprietary underwriting algorithm identifies high potential borrowers without a credit score. It then offers a credit card that requires no credit check, no deposit, no APR, and no fees.
With the new funding in place, the startup is set to expand into auto loans and mortgages.
Kristy Kim, COE, TomoCredit, says: "As a first-generation South Korean immigrant, I wanted to help immigrant communities to reach their American Dream faster with TomoCredit."