Stilt secures $114 million in debt and equity to help fintechs and neobanks launch credit offerings with its API – TechCrunch
Stilt secures 4 million in debt and equity to help fintechs and neobanks launch credit offerings with its API – TechCrunch

pilingswhich began life as an immigrant financial services provider, raised $14 million in Series A funding led by Link Ventures as it expands its reach to include a B2B offering.

In addition to the capital raise, the San Francisco-based fintech said it has also secured a new $100 million credit facility to lend to its lending clients, bringing its total raised to $375 million in equity and debt financing since its inception in 2015.

The capital increase coincides with the company’s launch of onbo, which he describes as a “credit as a service” product “that allows any business to create and offer a credit product, without the need for a banking sponsor in the background.” It also follows a 4x increase in annual recurring revenue in 2021, the company said, though it declined to reveal concrete revenue numbers.

Notably, the new product represents an extension for Stilt from a strictly consumer approach to include a B2B offering that could become an even bigger revenue stream, said co-founder and CEO Rohit Mittal.

“That market itself is almost, if not more than 100 times larger than our first product,” he told TechCrunch. “It has basic infrastructure. We become the layer above which all these companies can launch products.

Because Stilt has state lending licenses and an existing compliance framework, it says it can help businesses develop their own credit offerings while managing “all the complexity of origination, payments and credit reports” for them. It can also provide them with loan capital of up to $1 million.

A pilot program has been set up with several start-up clients. But starting today, Stilt said, any fintech or digital bank that wants to offer credit-building tools, revolving lines of credit or personal loans to its customers could do so using its technology-based product. ‘API. Using a single API, according to Mittal, a financial services company could be “up and running with just a few short lines of code in as little as two weeks.”

“We spent five years at Stilt obtaining state loan licenses, building our credit stack and refining our risk models,” Mittal said. “Now we’re opening that whole stack up for others to create their own innovative credit products in just a few weeks. It’s the fastest way we can think of to democratize lending and credit building at all levels. »

Founded by visa immigrants, Y Combinator-backed Stilt claims to have lent to people in more than 150 countries around the world.

“The basic idea started with wanting to help international students access affordable, higher-quality credit,” Mittal said. “I went to Columbia University and couldn’t rent an apartment because I had no credit, so I had to sleep on someone’s couch for weeks. Every landlord told me asked for my credit history or a co-signer.

There are other fintechs focused on serving immigrant populations, including Welcome Tech, TomoCredit and Houston-based Fair, all of which have raised venture capital in the past year.

Mittal believes that Stilt’s differentiator is that “few other immigrant-focused startups provide access to loans.”

Picture credits: pilings

The company plans to use its new capital to grow its 30-person team and increase the pace of product development with the goal of launching new products and adding new features to existing ones in the coming months. It will also invest in broader marketing efforts.

Link Ventures Managing Director Lisa Dolan said her company was drawn to “the team’s deep understanding of credit infrastructure and the broader mission of enabling credit to those who are credit-worthy but forgotten.” by traditional finance.

“We saw many companies focused on this mission, but few that had an understanding of credit infrastructure and acquisition like this team,” she added. “We see several neobanks for each demographic group and players offering lending products with alternative data. All play a role in this mission. We think Stilt is a great player in this ecosystem given its credit infrastructure.

Petrushka Investments, Hillsven Capital and angel investors including Gokul Rajaram, former Stripe COO Claire Hughes Johnson, Checkout.com CTO Ott Kaukver, Superhuman CEO Rahul Vohra, Josh Buckely and others also participated in the funding .

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