Meanwhile in San Francisco, robo advice meets alternative lending

By Daniel Lanyon on 30th October 2017

Fintech

Credit Sesame is deploying its own automated investment advice-style tech to its personal health service.

Meanwhile in San Francisco, robo advice meets alternative lending

Credit Sesame is deploying its  own automated investment advice-style tech to its personal health service.

Personal finance platform Credit Sesame has raised over $42m in equity and venture debt to expand its robo-advice services.

Launched in 2011, Credit Sesame has clocked up over 12 million members. It aims to provide consumers with tools “to build a path to achieve financial wellness”. This includes free access to their credit profile complete with their credit score, credit report grades, credit monitoring and recommendations for preferential lending options.

The new $42m in funding is comprised of $26.6m in equity and $15.5m in venture debt, bringing the San Francisco-based fintech company's total funding to over $77m. Financial Technology Partners LP acted as a strategic and financial advisor.

Credit Sesame's robo-advisor technology leverages its existing consumer data and analytics, which the firm claims is ‘a first of its kind’ in the fintech industry. This technology aims to simplify and automate the management of consumer credit and loans, addressing the liability side of the balance sheet and helping consumers achieve improved financial wellness.

The firm says, has seen over 100 per cent annual growth for the past three years and achieved full profitability in early 2017. Credit Sesame has spent the past few years developing and proving its robo-advisor technology says Adrian Nazari, founder and CEO of Credit Sesame. 

“This technology translates consumer financial and credit information into simple and actionable steps that consumers can easily understand and utilize to improve their financial profile and leverage their credit. As a result, 45 per cent of our members are engaged monthly, helping us achieve an unprecedented relationship and engagement with our members," he said."

The funding comes from existing and new investors including Menlo Ventures, Inventus Capital, Globespan Capital, IA Capital, SF Capital, among others, along with a strategic investor. The funds will be used to accelerate the company's growth, hiring, and member acquisition, and to advance its analytics, robo-advisor and machine learning technologies.

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