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A Reuters’ report said that the funding was raised at valuation of $800 Mn
Of the total fundraise, $51 Mn was raised in equity, while the remaining $200 Mn was raised in debt
Founded in 2021 by serial entrepreneur and TaxiForSure cofounder Raghunandan G, Zolve is a cross-border neobanking startup
Cross border neobanking startup Zolve has secured $251 Mn (around INR 2179.5 Cr) in a mix of equity and debt as part of its Series B funding round led by Creaegis, along with participation from HSBC, SBI, GMO and DG Daiwa.
Of the total fundraise, $51 Mn was raised in equity, while the remaining $200 Mn was raised in debt.
A Reuters’ report said that the funding was raised at valuation of $800 Mn.
The company said in a statement that it plans to expand both its reach and offerings. It aims to enter Canada, the UK and Australia while also growing its credit portfolio, starting with auto loans, followed by personal and education loans.
Founded in 2021 by serial entrepreneur and TaxiForSure cofounder Raghunandan G, Zolve touts itself as a cross-border neobanking startup that offers immigrants an FDIC-insured US bank account and a credit card without the need for a social security number in the United States.
It claims to address the plight of Indians and other expatriates moving to countries like the US by providing access to financial services despite the lack of a local credit history.
“The financial system isn’t designed for mobility. When talented people move countries, their financial history is erased overnight. We’re changing that by giving global citizens access to credit and banking from the moment they arrive,” Zolve’s founder Raghunandan G said in a statement.
The startup competes against the likes of Winvesta and Tide globally in the neo banking segment.
However, domestic startups like Razorpay, Skydo and Cashfree Payments do give cross-border financial services to Indians, but they primarily focus on domestic payment solutions rather than cross-border services for ex-pats.
The startup has raised more than $155 Mn in total funding so far.
In 2023, it secured a warehouse debt facility of $100 Mn from US-based impact investor Community Investment Management (CIM).
It also claims to have reached the customer footprint of 7.5 Lakh with a transaction volume of over $1.2 Bn.
On the financial front, the company claims to be unit profitable currently and is on track to achieve profitability by the end of 2025.
Zolve’s operating revenue narrowed 29.23% to INR 46 Cr in the financial year ending March 31, 2024, from INR 65 Cr in the previous fiscal year. However, its net loss zoomed 50% to INR 3 Cr in FY24 from 2 Cr in FY23, as per Tofler.
