Zolve, a Neo-Banking Startup, has Raised $40 Million in Series A Financing Round
Series A funding, led by partners of DST Global, has helped the neo-banking startup Zolve to raise $40 million.
Zolve is a Banglore-based neo banking startup that aims to help the global immigrant diaspora. Currently, the startup is focussing on the immigrants of the U.S. and enabling them to get financial services. It is always a difficult and time taking process for immigrants to get their bank accounts ready for transactions. Because the regulations vary from state to state. The unique and much-needed idea of the startup has helped the company to raise $40 million in a Series A financing round.
The series A funding round was led by partners of DST Global and participation from Tiger Global and Alkeon Capital and existing investors Lightspeed Venture Partners and Accel was also witnessed. The series A funding valued the startup at $210 million and took its all-time raise to $65 million. It is important to note that the startup is only 10 months old.
The main inspiration behind the startup was the financial problems that immigrants face in the U.S. Every year, thousands of Indians travel to the U.S. for study and work purposes. But because of hectic regulations and processes, financial services are hard to get quickly. Zolve has provided quick services with no physical branches and gives customers a cheaper alternative to traditional banks.
The demand and usage of Zolve have increased over time and the customers are paying on time. Moreover, it is currently collaborating with the banks from India and the USA. The demand for Zolve has even expanded to the immigrants of the UK, Australia, Canada, and Germany. Talking about the future plans, the CEO Raghunandan G said that the company is looking to expand its services to other immigrant nations also.
Zolve also tells that the company is aiming to increase its team. The company had less than 10 headcounts at the beginning of this year. But it aggressively expanded and it has around 100 employees at the moment.
“The company’s rapid acceleration, especially around customer acquisition and usage, is a reflection of the team’s execution capability and significant unmet needs of Zolve’s target customer base. We’re excited for what the future holds and have high confidence in Zolve’s future success,” founder Raghunandan G. said.
Neobanks is a sub-category of Fintech. There is no doubt that fintech is completely changing financial services upside down. The inclusion of digital technology in the banking sector has not only made the processes robust but has also inculcated transparency. As per the requirements, the development of custom fintech applications has become very popular. Therefore, it has to be admitted that fintech is providing digital and robust solutions to banking problems.