US-based fintech company Deserve, which offers fair credit products for young people and a cloud-based credit card platform for businesses, raised US$ 50M in Series D funding on 24 June 2021.
Investors: The funding round was led by Mission Holdings, Mastercard and Ally Ventures with participation from Goldman Sachs Asset Management, Sallie Mae and other existing investors.
Purpose of the funding: The funds raised will be utilized in accelerating Deserve’s mission to modernize the credit card stack and enable the industry to launch and scale credit card programs through modern APIs.
Founded in 2013 by Kalpesh Kapadia and Michael Hallinan, Deserve is the first credit card-as-a-service software platform that leverages Mastercard’s Digital First Program for instant issuance/provisioning for credit with uncompromising security and provides a seamless digital experience. Deserve’s credit card application process comes with a Mobile-First approach allowing consumers to apply activate and provision their card in digital wallets within minutes.
The company partners with financial institutions, fintechs and modern consumer brands, universities and associations to deploy and power its white-label and co-branded credit card programs.
Deserve sees potential in credit card applications. Instead of just looking at credit history, it determines the applicant’s credit potential by looking at factors such as education, current financial health and future employability and earnings potential. The entire process from sign up till approval to account management is simple and seamless. It has an enhanced underwriting process that provides flexibility to partners that extend beyond FICO scores. By leveraging income and employment data, Deserve improves approval rates and credit performance.
What the CEO has to say: “This investment validates the industry’s embrace of a digital-first approach. We have rebuilt the consumer’s entire credit card experience from the ground up, transforming the plastic credit card into software that delivers a superior digital experience and forever changes how we use credit cards to make payments, earn rewards and borrow money.” — Kalpesh Kapadia, Deserve CEO and Co-Founder.
What the investors have to say: “With its Digital First Card, Deserve is leading the modernization of the credit card from a piece of plastic to a powerful software that will drive the digital transformation of the industry and we are thrilled to partner with Deserve to make it possible.” — Saurabh Mittal, Chairman of Mission Holdings.
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