Deserve Receives $250 Million Credit Facility

https://finovate.com/deserve-receives-250-million-credit-facility/
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  • Deserve received a $250 million credit facility from Goldman Sachs, Cross River, and Waterfall Asset Management.
  • Last year, Deserve experienced a 650% growth in transactions volume and an 800% growth in receivables.
  • The company will use the credit facility to meet the growing demand from financial institutions, fintechs, and consumers.

Payment-card-as-a-service startup Deserve announced a new $250 million credit facility from Goldman Sachs, Cross River, and Waterfall Asset Management.

Deserve (formerly Self-Score) has re-imagined traditional credit cards by transforming the application and onboarding processes, as well as the credit card itself by bringing them into the digital-first era. The company enables businesses to provide a white-labeled or co-branded card program made possible via a set of configurable APIs and SDKs.

Among Deserve’s clients are BlockFi, M1 Finance, OppFi, Seneca Women, Notre Dame Global Partnerships, and KrowdFit. The company will use today’s funds to meet the growing demand from financial institutions, fintechs, and consumers. Last year, Deserve experienced a 650% growth in transactions volume and an 800% growth in receivables. The company expects the new credit facility will boost its growth even further.

“At Deserve, we’re committed to helping organizations quickly and securely launch any type of credit card product in the cloud, customized to their specific audience – a valuable touchpoint with customers and a must-have in today’s landscape of competitive brand loyalties,” said Deserve CEO and Co-founder Kalpesh Kapadia. “Because our platform is digital-first and mobile-centric, customers can, in turn, begin using their Deserve-powered credit card minutes after application, no plastic required. We’re excited about what this new financing will enable us to do as we amplify our reach and help more fintechs, financial institutions, SMB lenders, and brands connect with and grow their customer base.”

In the coming years, Deserve plans to launch card programs to help consumers manage subscriptions, augment BNPL, and unlock their home equity. The California-based company also plans to build card programs for SMBs and commercial customers.

The $250 million credit facility comes six months after Deserve’s $50 million Series D equity round in October 2021 which boosted the company’s total funding to over $294 million.

Founded in 2013, Deserve has been recognized by Financial Times and Statista as one of The Americas’ Fastest-Growing Companies 2022. In 2020, the company was ranked #4 on the Inc. 5000 Series list of the fastest-growing private companies in California.


Photo by lucas Favre on Unsplash

https://finovate.com/deserve-receives-250-million-credit-facility/