Self Financial, a fintech firm that wants to help individuals establish credit while also saving money, announced today that it has raised $50 million in Series E funding.
The round was headed by Altos Ventures, with Meritech Capital and Conductive Ventures also participating, bringing the total raised by the Austin-based business to $127 million since its creation in 2015. The startup, like many other fintech these days, strives to make credit and savings more accessible to everyone, regardless of their credit background. To get started, there is no need to run a credit check.
Self founder and CEO James Garvey remarked, “We’ve been focused on offering high-quality, low-cost products that help with mainstream credit availability.”
Self Financial now employs 200 people, up from around 80 at the start of the year. The company, which was formed in California but relocated to Austin after participating in the city’s Techstars program, aims to expand its workforce with its new funds.
Garvey declined to provide specific revenue estimates, claiming only that self will generate “nine figures” in revenue this year, up from around 2 xs in 2020. Self’s active customer base has grown by more than a million people in the last year. It has served over 2 million customers throughout the years. He described the fintech’s core product as secured installment loans, or small-dollar loans secured by a savings account with a CD (certificate of deposit) attached.
Customers can receive access to a Self’s Visa credit card after successfully using that product.
Credit Builder products are available through Self’s three bank partners; however, the firm has developed its own proprietary core technology platform, which, according to Garvey, “powers everything behind the scenes.” Apps for iOS and Android, as well as desktop applications, are available from the company. Self will allow those with an H-1B or L 1 work visa or a student visa to open Credit Builder accounts starting this month, a move Garvey says “opens the door for more people who are new to the U.S. credit system to participate.”
He went on to say, “We believe everyone should have the opportunity to improve their financial future.” Self’s long-term aspirations include entering the insurance sector and launching a new product to help its consumers get credit.
“Credit score is used for a number of things, and it’s an essential element in deciding the cost of auto insurance in many states,” he explained. “As one of the perks of having a higher credit score, we will be assisting our consumers in obtaining auto insurance.”