Credit Sesame raised the fund through both equity and debt. The company declined to reveal the valuation of the funding, as more investors are expected to get on board the platform. It has raised a total of $110 million to date.
Launched in TechCrunchDisrupt 2010 by Adrian Nazari, the startup generates credit scores of the customers and provides them with suggestions to improve their credit score.
Credit Sesame improves the financial health of its customers, thereby giving them a better chance to be eligible for loans. Founder and CEO Nazari stated that the funding round would come as the last before the company files for IPO.
The financial monitoring platform uses the ‘Personal Credit Management’ program powered by its proprietary RoboCredit algorithms to evaluate the credit scores of its users and guide them on how to improve them.
The platform offers free services and premium services to its users. Customers can use the platform to check their credit score and get customized suggestions without any fee. However, if they purchase products suggested by the platform, they will be entitled to pay a fee.
“We’re thrilled to open the gates to a new age of Personal Credit Management with the Credit Sesame team leading the space,” expressed ATW Partners’ Co-founder and Managing Partner Kerry Propper on his view about partnering with Credit Sesame.
He further added that Credit Sesame had brought a lot of transparency for the customers in understanding their financial health and taking meaningful actions to improve them.
According to Nazari, Credit Sesame has witnessed a 90% increase in revenue, year after year for the last five years. The financial market space is crowded with big players like Equifax, ClearScore, Experian, Credit Karma, among many others.
Credit Sesame plans to take the fight to them by using the latest funding to enhance its artificial intelligence algorithms and expand its network.
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