According to the press release, the debt funding will be utilised to offer credit products to immigrants, especially people from India, moving to the US. The capital will also be used to expand operations and offer a wide range of financial services for immigrants moving to the UK, Canada, and Australia. The company also stated that the funding will also be deployed to scale its products to individuals from a multitude of geographical locations and demographic backgrounds.
Zolve's position and strategy
Zolve positions itself as a cross-border neobanking startup, providing immigrants with an FDIC-insured US bank account and a credit card, all without the requirement of a US social security number.
The platform largely targets Indians immigrating to the US, as more than 4 million local citizens migrate overseas every year for higher education or career opportunities. As per Zolve, this represents USD 100 billion in annual spending by the Indian diaspora. The startup aims to address this specific market niche by offering a range of products, including remittance solutions and insurance plans. It has so far onboarded nearly 500,000 users since its inception and has facilitated transactions worth more than USD 600 million.
The startup last
raised USD 40 million as part of a Series A funding round led by DST Global Partners. Zolve has secured USD 55 million in equity funding since its inception and now has access to USD 100 million in debt funding.
The press release notes that, as India's overseas travel increases, the reliance on conventional methods like credit cards, debit cards, forex cards, and even External Rupee Accounts for money transfers and spending appears to be outdated. The emergence of neobanks has become important with offerings such as travel-friendly Debit + FX cards, automated processes, and transparent products. This has possibly led to a rise in the popularity of neobanks even as these fintech platforms look for monetisable use cases to build innovative solutions.
