Zolve – a cross-border neobank helping immigrants worldwide gain access to financial services – recently announced that it has secured a warehouse debt facility of up to $100 million from Community Investment Management (CIM). This milestone marks another major step forward in Zolve’s mission to ensure the seamless movement of people and money across countries.
The $100 million debt fund secured from CIM will be used to cater to offering credit products to migrants in the US. And the infusion of funds will enable Zolve to further empower individuals from many geographical locations and demographic backgrounds on their financial journeys, elevating their banking experience within the United States.
Since being founded in August 2021, the platform attracted around 500,000 users, facilitating transactions worth more than $600 million. And the company’s customer retention at > 86% (12 months) and the increase in organic and referral rate (now at >62%) over the last two years convey that Zolve effectively addresses a persisting challenge faced by a substantial portion of its customer base.
Reports indicate that over 2.5 million people immigrate to the US annually, contributing over $75 billion to the economy. And with over 45 million foreign-born residents, there is a significant opportunity to support their financial needs, including international money transfers, affordable insurance plans, and loans.
With the new funding round, Zolve is ready for further expansion. Geographically, UK, Canada and Australia top the list, given its popularity among global immigrants.
Zolve is a financial technology company (not a bank). The Zolve Debit Card, Zolve Credit Card, and Zolve Azpire Credit Card are issued by Community Federal Savings Bank, Member FDIC and the Zolve account is offered by Community Federal Savings Bank. In February 2021, Zolve raised $15 million in seed funding in a round led by Accel and Lightspeed followed by $40 million raise in October 2021
KEY QUOTES:
“Zolve is driven by a vision of growth and inclusivity, breaking down financial barriers. I believe that when individuals embark on journeys to new countries, be it for education or work, financial barriers should never impede their progress. With the recent capital we’ve raised, we move closer to realizing a world where access to essential financial resources transcends borders and backgrounds.”
“In the quarters ahead, we’re set to broaden our horizons. Our journey has just begun, and we aspire to extend our reach, offering a bouquet of inclusive financial services that elevate the financial experience for all.”
— Raghunandan G, Founder of Zolve
“We are excited to be early supporters of Zolve’s vision to provide a comprehensive financial solution to the global immigrant community in the United States. In only two years of operations, Zolve has achieved remarkable growth within this creditworthy but underserved segment of the market and we are pleased to partner with Raghunandan and his team.”
— Jacob Haar, Managing Partner of CIM
“Zolve has achieved remarkable growth within only two years of operations while ensuring profitable unit economics amidst a challenging global macro environment.”
— Anand Daniel, Partner at Accel, one of Zolve’s early investors
