Credit card startup Deserve on Wednesday (May 11) secured a $250 million credit facility with Goldman Sachs, Cross River and Waterfall Asset Management that will help the platform expand its digital credit card offering to more people in more places, according to a company press release.
Deserve will use the fresh capital to meet increasing demand from financial institutions, FinTechs and consumers for the digital-first credit card offering. The company has launched credit card programs for BlockFi, M1 Finance, OppFi, Seneca Women, Notre Dame Global Partnerships, KrowdFit and others in the past year, per the release.
Additionally, Deserve is looking to add a new offering that will help consumers manage subscriptions, augment buy now, pay later (BNPL) and unlock their home equity, as well as card programs for small- to medium-sized businesses (SMBs) and commercial customers.
“We’re committed to helping organizations quickly and securely launch any type of credit card product in the cloud, customized to their specific audience — a valuable touchpoint with customers and a must-have in today’s landscape of competitive brand loyalties,” said Kalpesh Kapadia, CEO and co-founder of Deserve.
“Because our platform is digital-first and mobile-centric, customers can, in turn, begin using their Deserve-powered credit card minutes after application, no plastic required,” he continued. “We’re excited about what this new financing will enable us to do as we amplify our reach and help more FinTechs, financial institutions, SMB lenders, and brands connect with and grow their customer base.”
Deserve’s credit facility addition comes on the heels of the company’s $50 million Series D fundraising round.
Related: Credit Startup Deserve Launches Card Platform
Last month, Deserve debuted what it calls a first-of-its-kind platform that lets banks and B2B companies launch corporate credit and charge cards.
Deserve said its platform is designed for companies of all sizes, letting them create cards for business customers and offer services such as instant issuance and digital wallet provisioning, which lets cardholders use their cards within minutes. Deserve also provides enterprise-level controls, allowing finance teams to track, manage and understand expenses.
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