Yendo – a company that created the first-ever vehicle-secured credit card – recently announced the closing of its $24 million in Series A financing led by FPV Ventures along with existing investors Human Capital and Autotech Ventures. And this marks a significant milestone for Yendo, a company that provides a prime credit offering to the millions of Americans who previously lacked access to the financial system because of their credit score.
This funding round will fuel the next phase of growth for Yendo, enabling the company to make key hires, enhance the product experience and help more people by expanding into more states. As part of the deal, lead investor Wesley Chan is joining the board.
The company is on a mission to provide broader access to affordable credit so everyone has the opportunity to achieve their financial goals. And with Yendo, consumers who own their car can tap into the value of their vehicle to gain access to up to $10,000 in revolving credit at a fixed, affordable rate, agnostic of their credit score.
The company determines a person’s credit limit based on several factors including their income and expenses, as well as the value of their vehicle. And this provides equal opportunity to people who have historically been excluded from the traditional credit system and gives them the ability to establish and build credit. This is important to Yendo’s customers, as 90% cite building credit as a significant driver for applying for the product.
Yendo is saving its customers over $85,000 in interest each day and has grown its customer base by 15% week-over-week since launching last year. And the Yendo card is the first of a suite of financial products being developed by Yendo to serve Americans who have been underserved by the current financial system.
KEY QUOTES:
“The current financial system is not set up to serve everyone. As a result, millions of Americans lack access to affordable lending options, leading many to rely on high-interest, non-bank financial products, which costs them billions of dollars annually. We want to transform the way Americans interact with financial services by building a product that can expand access to affordable credit, regardless of consumers’ credit scores. We’re confident this funding will help expedite our growth so we can continue to scale our business and product to help more people.”
— Jordan Miller, CEO and co-founder of Yendo
“We’re excited to partner with Jordan and the Yendo team. Jordan is a brilliant product developer who has created a product that provides access to affordable credit to a population of consumers who have historically had terrible lending options, if any. This helps level the playing field for consumers and we’re thrilled to back this mission and team.”
— Wesley Chan, co-founder & managing partner of FPV Ventures
