CIM provides a $100 million financing facility to Zolve
It will be used by Zolve, which has operations in Bengaluru and San Francisco, to provide credit products to immigrants in the US.
Community Investment Management (CIM), a US-based impact investor, has provided a warehouse loan facility of $100 million to cross-border neobanking company Zolve. The San Francisco and Bengaluru-based company Zolve intends to utilize the financing facility to provide credit products to immigrants in the US.
With the most recent funding we've received, Raghunandan G, the creator of Zolve, remarked, "We move closer to realizing a world where access to necessary financial resources transcends borders and backgrounds."
In a Series A investment round headed by partners of DST Global in October 2021, Zolve raised $40 million (about 300 crore) with participation from Tiger Global, Alkeon Capital, and current investors Accel and Lightspeed Venture Partners. In that round, it was valued at $210 million (1,575 crore).
Before starting Zolve in December 2020, Raghunandan and cofounder of Koo Aprameya Radhakrishna cofounded the taxi aggregation app TaxiForSure. 2015 saw the sale of the business to competitor Ola for $200 million.
Raghunandan is working with immigrants at Zolve to find financial solutions. When immigrants arrive, the organization offers them financial services including bank accounts and credit cards. Users may immediately begin establishing credit using its banking services.
According to Zolve, since its launch, it has drawn close to 500,000 users and enabled transactions totaling more than $600 million. It claims that its 12-month client retention rate exceeds 86% and that the pace of organic and referral growth has reached over 62%.
Anand Daniel, partner at Accel, one of Zolve's early investors, remarked, "Zolve is accomplishing remarkable growth during only two years of operations while achieving profitable unit economics amidst a challenging globally macro environment."
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