Neobank Zolve raises $100 Mn in debt

Crossborder neobank Zolve has raised $100 million in a warehouse debt facility from US-based impact investor Community Investment Management (CIM). 

The debt funding will be used to offer credit products to immigrants (especially Indians) moving to the US, the company said in a statement. The capital will also be used to expand operations and offer a bouquet of financial services for immigrants moving to the UK, Canada and Australia. 

Founded in 2021 by Raghunandan G, Zolve offers immigrants an FDIC-insured US bank account and a credit card without the need for a social security number in the United States.

So far, it has onboarded nearly 5 Lakh users since its inception and has facilitated transactions worth more than $600 million. Zolve claims its 12-month customer retention rate stands at more than 86%.

The startup last raised $40 million in its Series A round led by DST Global in October 2021. Zolve has bagged $155 million in equity and debt financing to date.

This is one of the largest debt rounds for an Indian origin company in 2023. Earlier this year, neobank Stashfin also scooped up $100 million in debt. The list also includes Byju’s, Mensa Brands, Leverage Edu, Rebel Foods, Lendingkart and Bhavish Aggarwal’s new venture Krutrim SI Designs.