Revolution Ventures Invests in Kashable, the Fintech Leading the Socially Responsible, Employer-Sponsored Credit Movement
The $25.6M Series B will be used to expand sales and engineering teams and increase the company’s loan portfolio.
Meet Kashable — the fintech equipping working America with a better way to tackle costly debt and cover unexpected expenses during times of financial hardship.
What They’re Solving For: 57% of Americans can’t afford a $1,000 emergency expense, 65% report living paycheck to paycheck, and an increasing number are being forced to dip into their retirement savings in the face of unforeseen life events. Subprime and unestablished credit scores additionally prevent those in need from obtaining necessary loans at reasonable interest rates. Meanwhile, 97% of employers feel more responsible than ever for employees’ financial wellness, and 82% of employees believe that their employer should play a role in supporting their financial well-being.
What They Do: Kashable’s platform offers employees of participating employers low-cost loans deposited directly into their bank accounts, providing a financial safety net for emergencies, hardships, or any other credit need that may arise. The company’s innovative model enables approval in minutes, with no hidden fees, no prepayment penalties, and automatic repayments through payroll deductions.
How They Do It: Kashable’s deep integrations with employer payroll systems and innovative underwriting process have made it the choice (and largest) provider of employment-based loans in the U.S. The company’s methodology considers group and individual employment data, income stability, and other factors in real-time, with an algorithmic decision engine that allows the process to be fully automated, and free of bias. This not only allows employees to receive better loans (at a lower cost with higher approval rates), but also allows Kashable to underwrite loans at scale as it serves a growing number of working Americans. The cherry on top: Kashable loans also help borrowers establish and increase their credit scores.
The Results To-Date: Since its founding, Kashable has extended credit to hundreds of thousands of individuals through more than 250 employers, including Cigna, Reid Health, Huntington Ingalls, and Alight Solutions. In total, more than 2.5M employees have access to Kashable’s loans. More than half of those employees cite Kashable’s resources as having been helpful in improving their financial literacy, and an overwhelming 90% of employees agree that Kashable has helped reduce their financial stress. In turn, Kashable’s services have been an invaluable asset for HR teams looking to expand their benefits package and attract and retain talent.
Why We Like It: Small-dollar lending in the near-prime and sub-prime market is often challenging as direct-to-consumer models suffer from high customer acquisition costs and unreliable loan underwriting practices. Kashable’s employer-centric model addresses both of those issues head-on and provides an innovative solution for borrowers who otherwise face limited or no access to reasonable credit.
Where They’re Headed: Kashable’s Series B will accelerate the development of additional financial wellness services, and bolster the company’s ability to extend affordable credit to employees across the credit spectrum. The funding will also allow Kashable to grow its research and development technology team, further refine its innovative underwriting model, and enhance its suite of financial products.
Revolution Ventures is thrilled to partner with Kashable and help the team accelerate its vision to help all working Americans forge a path to financial security. We look forward to leveraging our fintech expertise to support Kashable in helping more people manage debt and create future wealth.
For more on Kashable, visit kashable.com.
