Stilt, a Y Combinator alum that equips financial services for immigrants without Social Security numbers or approval reports, announced today that it has closed a $7.5 million seed round. It likewise launched FDIC-insured pre-approved world bank account today.
The startup has raised equity from investors including Liron Petrushka; Hillsven Capital; Streamlined Ventures; Gokul Rajaram; Bragiel Brothers; Fundbox CEO Eyal Shinar; Next Insurance CEO Guy Goldstein; Charles Choi of SK Networks; and Y Combinator spouses Dalton Caldwell and Kevin Hale.
It too raised about $ 100 million in debt capital, or money to be used for giving, from Smart Lenders Asset Management, FourthGreen Capital and others.
The startup, which launched out of Y Combinator’s wintertime 2016 batch, was founded by CEO Rohit Mittal, which have already been use as a data scientist at PopSugar, and Priyank Singh, a application make “whos working” at Amazon subsidiary A9 and Microsoft.
Both knew firsthand the challenges of renting suites and securing student loans and other financial services as immigrants to the United Regimes, and wanted to create a service that would help others in the same position.
Stilt’s first product was loans, and, over the past four years, Mittal said it has lent hundreds of millions of dollars.
” There are very few services in the U.S. that allow non-U.S. citizens to open accounts without a Social Security number, so our focus is not only giving them the best cross-border digital banking service, but one that is also very tightly integrated into a recognition stage. Anyone opening a bank account with us is eligible for a whole bunch of credit makes ,” Mittal told TechCrunch.
The company employs proprietary technology that scores applicants without recognition reports by analyzing a wide range of business and non-financial data to create risk patterns. This includes data sets from universities, half a million employers and millions of job slots, plus data from credit bureaus and banks, in addition to the type of visa an applicant has( for example, an applicant on a student visa “wouldve been” composed differently than person on a H-1B visa ), and their monetary autobiography. Further lends are underwritten based on the performance of the user’s firstly loan from Stilt.
The interest rate for Stilt’s lends is generally about 13.5% to 14%, render entrants a better alternative to traditional lenders or payday loans.
” We’re a mission-driven company, so we won’t do business where we are charging anyone a 100% interest rate. Consumers should be able to get the best option and we try to improve our recognition risk example to give the best rate possible, even if they don’t have the traditional approval criteria that other banks look for ,” said Mittal.
Stilt currently focuses on personal financial services, but plans to add concoctions for small and medium-sized businesses in the future. Over the past few months, Mittal says the company has seen an increase in works because of the COVID-1 9 pandemic, but he adds that loan performance has remained steady.
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