Menlo Park, California-based credit card startup Deserve has confirmed bagging $50 million fresh funding led by Goldman Sachs. The Series C round also saw participation from the existing backers, Sallie Mae, Accel, Aspect Ventures, Pelion Venture Partners and Mission Holdings. Prior to this round, the firm had picked up $19 million as part of Series B funding when Sallie Mae had led the round in August last year. The current infusion totals the funding raised by the firm to $147.4 million.
Founded in 2013 by Kalpesh Kapadia and Michael Hallinan, the firm offers credit products for young people and a cloud-based credit card platform for businesses. The funds will towards the development of its “Card as a Service” (CaaS) platform. At the same time, the firm will use the raised capital to hire engineers and data scientists who will help them build the infrastructure, tools, APIs, and machine learning capabilities.
Ashwin Gupta, Goldman Sachs' managing director talking about the investment said, "Goldman Sachs is supportive of Deserve's mission to expand access to credit, and to simplify the ability for organizations to offer their own bespoke credit card products. We believe Deserve's card platform will bring meaningful savings and new opportunities to institutions across a range of verticals."
Kalpesh Kapadia, the CEO of the firm speaking to CNBC said, “There’s a need for a modern, mobile-first, digital-first, highly configurable solution that’s completely in the cloud. Goldman sees the value in that given they didn’t have any legacy infrastructure when they started Marcus.”
It will be interesting to see how things turn up for Deserve post this capital infusion.
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