Total amount raised
$171.5 Millions
Latest funding date
06/01/2021
Location
Credit Sesame has successfully raised significant funding over multiple rounds, establishing itself as a key player in the financial technology sector. The platform offers a range of services including credit score monitoring, personalized credit card recommendations, and digital banking solutions.
Keep reading to explore the intricacies of Credit Sesame's fundraising journey and the investors backing this innovative platform.
What Is Credit Sesame?
Credit Sesame, founded in 2010, is a platform dedicated to providing free financial planning and credit score analysis tools. Located in Mountain View, California, the company aims to help users manage their credit, find financial products, and improve their financial health.
Credit Sesame offers a variety of services including daily credit score monitoring, credit report summaries, credit monitoring alerts, and personalized financial advice. Additionally, they provide recommendations for credit cards, loans, and insurance products, along with a digital banking service through Sesame Cash.
While the company's official website does not mention the founders' names or the number of employees, it highlights their commitment to user data protection with 256-bit encryption and a policy against selling personal information to third parties.
How Much Funding Has Credit Sesame Raised?
- Series A
- Amount Raised: $1.2M
- Date: April 2010
- Lead Investors: Inventus Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To launch the platform and develop initial financial planning tools.
- Series B
- Amount Raised: $6.2M
- Date: March 2011
- Lead Investors: Menlo Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's features and user base.
- Series C
- Amount Raised: $12M
- Date: June 2012
- Lead Investors: Globespan Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance credit monitoring services and scale operations.
- Series D
- Amount Raised: $16M
- Date: May 2015
- Lead Investors: IA Capital Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To introduce new financial products and services.
- Series E
- Amount Raised: $26.6M
- Date: October 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and improve technology infrastructure.
- Debt Financing
- Amount Raised: $15.5M
- Date: October 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational costs and strategic initiatives.
- Series F
- Amount Raised: $43M
- Date: August 2019
- Lead Investors: ATW Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand product offerings.
- Series G
- Amount Raised: $51M
- Date: June 2021
- Lead Investors: Healthcare of Ontario Pension Plan (HOOPP)
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the financial wellness platform and launch AI-driven services.
Total Amount Raised: $171.5M. Current Valuation: Not publicly disclosed.
Key Investors
- Healthcare of Ontario Pension Plan (HOOPP)
- Details: HOOPP is a defined benefit pension plan for Ontario's healthcare workers. It manages a diversified portfolio to ensure long-term financial stability for its members.
- Investment Focus Areas: Real estate, private equity, infrastructure, public equities.
- Notable Investments: Investments in various sectors including technology, healthcare, and real estate.
- Menlo Ventures
- Details: Menlo Ventures is a venture capital firm that provides capital to early-stage and growth-stage companies. It has a strong track record of backing successful startups.
- Investment Focus Areas: Technology, consumer, healthcare.
- Notable Investments: Uber, Roku, Warby Parker.
- ATW Partners
- Details: ATW Partners is a private investment firm that focuses on growth equity and special situations. It aims to support companies through various stages of growth.
- Investment Focus Areas: Technology, healthcare, consumer sectors.
- Notable Investments: Wheels Up, Vroom.
- Globespan Capital
- Details: Globespan Capital is a venture capital firm that invests in information technology companies. It supports businesses at various stages of growth.
- Investment Focus Areas: Software, internet, infrastructure.
- Notable Investments: Nutanix, JBoss, Palo Alto Networks.
- IA Capital Group
- Details: IA Capital Group is a private investment firm focused on insurtech and fintech. It aims to drive innovation in the financial services industry.
- Investment Focus Areas: Insurtech, fintech, real estate technology.
- Notable Investments: Marqeta, SmartAsset, Boost Insurance.
What's Next for Credit Sesame?
Credit Sesame stands at the cusp of significant growth opportunities, driven by the increasing demand for digital financial services. The integration of rent reporting services through the acquisition of Zingo and the launch of AI-driven features to help consumers build credit profiles without a credit check are poised to attract a broader user base. These innovations aim to address the needs of the 44 million Americans who are credit invisible, offering a substantial market for expansion.
Future fundraising efforts are likely to focus on scaling these new services and enhancing the platform's technological capabilities. The company's operational profitability and rapid growth in premium subscriptions make it an attractive candidate for additional investment rounds. However, challenges such as integrating new technologies, ensuring data security, and competing with other financial wellness platforms will need to be navigated carefully.
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