Self Financial raises $ 50 million to help subprime consumers build credit and savings at the same time – TechCrunch

Autonomous, A fintech company that aims to help consumers build credit and savings at the same time announced today that it has raised $ 50 million in E-Series funding.

High Business led the funding, which included participation from Meritech Capital and Conductive Ventures and raises the entire Austin-based startup to $ 127 million since its inception in 2015.

The company, like many fintechs these days, aims to make credit and savings more accessible, regardless of a person’s financial history. It does not require strict credit check to get started.

“We are focused on providing high quality, low cost products that help access key credit,” said Self Gar’s founder and CEO James Garvey.

Today, Self Financial has 200 employees, up from about 80 at the beginning of this year. The startup, which was originally founded in California but moved to Austin after joining the Techstars program in the city, plans to hire more with its new capital.

Garvey declined to comment on hard-earned data, saying only that Self was going to generate “nine-digit” revenue this year, about twice as much as in 2020. Self’s active customer base has more than doubled in the last 12 months to about 1 million today. Over time, it has served more than 2 million customers.

Fintech’s top product, he said, are basic installment loans or small dollar loans with a deposit account attached to a CD (certificate of deposit).

After successfully using this product, customers can access the Self’s Visa credit card.

Image Credits: Self-economic

Self’s Credit Builder products are issued through its three banking partners. But the company has created its own proprietary core technology platform that Garvey says “dominates everything behind the scenes.” The company’s products are available through iOS and Android, as well as through a computer application.

Starting this month, the Self will allow people wto have an H-1B or L 1 work visa or a student visa to open Credit Builder accounts, a move Garvey said “opens the door to more people new to the US credit system.”

“We believe that everyone should have the opportunity to improve their financial future,” he added.

Some of Self’s long-term goals include entering the insurance market, as well as the planned release of another product designed to provide its customers with access to credit.

“The credit score is used for many things and in many states it is an important factor in determining the cost of car insurance,” he said. “We will help our customers gain access to car insurance as one of the benefits of a higher credit score.”

The company plans to use its new capital to hire about 50 to 100 people over the next 12 months, Garvey said. He recently appointed Kathleen Leonik to serve as its Chief Compliance Officer. He has previously held leadership positions at Juniper Bank, Barclaycard and, more recently, Mercury Financial. He has also worked in compliance at First USA, Bank One and Chase.

Altos Ventures CEO Anthony Lee described himself as a pioneer in the ever-increasing space. This week, TomoCredit, which has the same goal of helping underrepresented consumers build a credit history, announced that it had raised $ 10 million. And last week, Varo Bank – the first US new bank to be hired by a national bank – raised a whopping $ 510 million in a $ 2.5 billion E-Series round of financing.

“James and his team at Self had a clear mission from day one: to create credit and savings for millions of Americans who have been marginalized by the dominant financial system,” Lee said. “It is a mission that will take decades to accomplish and we are happy to be there for the trip.”

For Silverton Partners CEO Morgan Flager, who participated in the Self’s Series AD rounds, Garvey’s passion was the key to his recurring investments in the company.

“When you have a founder with a clear and noble vision for solving a critical problem so huge, it’s hard to say no as an investor,” he told TechCrunch.

The company also pulled Self’s mission to “raise” subprime consumers.

“Many of the offers to subprime consumers are expensive and restrictive,” he said. “Self Financial is unique in that it intends to break this cycle, rather than just taking advantage of it in a different way.”

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