There are several fintech companies claiming to be developing a more inclusive, mission-driven financial platform for low-income people. However, barriers such as a credit history requirement or predatory interest rates and fees prevent a large group of individuals from participating in our financial institutions. Line’s creator and CEO, Akshay Krishnaiah, believes he can persuade consumers to support his vision of a more egalitarian financial network. His company provides emergency cash loans to clients for as little as $10, without charging interest or requiring confirmation of credit history or income. As a customer’s trust rises as a result of repayment, so does his or her capacity to seek larger checks.
Krishnaiah has secured millions of dollars in additional investment for his firm in order to integrate the customer’s perspective into financial services. He tells TechCrunch that Line has received a total of $25 million in a round headed by Massive, including $7 million in equity and $18 million in debt. TASC Ventures, Goodwater Capital, SustainVC, Avesta Fund, Strada Education Network, The Josephine Collective, Overtime VC, Techstars, and Kelmhurst were among the other investors in the round.
With additional funding, Krishnaiah believes that viewpoint will be Line’s biggest disruption and the reason it will work through customer trust difficulties with the rest of the finance business. The entrepreneur, a former Uber driver, has firsthand knowledge of the situation he’s attempting to change. “Who are the champions of product creators?” “They were never in financial jeopardy as I or my family were,” he claimed. “As a result, the solutions that have been developed are additional islands that are inoperable, non-inclusive, and do not communicate with one another.”
The entrepreneur recalled years when he couldn’t afford new shoes while being in his growing years, resulting in arthritis that he still has now. He was almost disqualified from the national debate championship because he couldn’t locate a clean shirt, and he frequently had to choose between eating to keep his sugar levels stable and taking the bus to school. His parents were raised in “severe poverty,” which influenced his viewpoint.
“Today’s product developers, whether in Silicon Valley or elsewhere, haven’t gone through this,” Krishnaiah added. He recalls investors telling him that his firm, which provided tiny checks of fast cash, could easily be replaced if someone in need just asked a buddy to Venmo them. “I couldn’t ask a buddy to lend me money so I could eat and then catch the bus for the same reasons; it wasn’t realistic… and since they have never been there or done there, many cannot relate to that reality.”
