Neobank Zolve raises $15m to ease financial services for migrants

Zolve, a challenger bank that offers front-end banking solutions to Indian migrants in the United States and across the globe, has raised $15m in its latest round of Seed Capital Funding.

There was also participation from Blume Ventures and established angel investors in the round led by Accel and Lightspeed, including a former managing director of Helion Ashish Gupta, an angel investor in Twitter and Ripple, Greg Kidd, a founder of Cred Kunal Shah, a managing partner at DST Global, Rahul Mehta, and a senior managing director at Coatue Capital, Rahul Kishore. This round was also participated in by US-based Founder Collective, one of Uber’s investors, as well.

This new funding will in turn enable the US-based startup to leverage tie-ups with banks in the US and India to ensure that migrants shifting from India to the US and vice versa, can get access to banking and financial services, according to the company.

Despite the fact that migrants in other countries have a credible financial history in their home country, obtaining seamless financial services, as well as banking and credit services at competitive rates can be a herculean task, the company said. There is a possibility that this might be due to the lack of any existing credit history in the new country. This can take up to three to four years to establish, which can be a lengthy process.

Zolve’s platform will be launched by the end of the year in an effort to ensure that students and professionals moving overseas will not have to deal with this issue.

As part of their plan to offer a wide range of services to their customers, not only from a financial standpoint, but also remittances, cryptocurrencies, loyalty-based solutions, insurance, credit through partnerships, as well as trading of shares of companies listed on US exchanges.

In spite of the fact that currently, the FinTech startup only has customers in India, it receives most of its revenue from banking partners in the United States, which is one of the reasons its revenue is so high. A number of revenue-generating arrangements are already in place between the company and other financial companies in order to increase revenues.

For the development of its own credit card and debit card, Zolve has partnered with five Indian and American banks as well as with card processing giant Visa.

Raghunandan G, the founder and CEO of Zolve, is not a first-time entrepreneur. In addition to his role as founder and CEO of Taxi For Sure, he was responsible for the acquisition of the platform by Ola for $200  in 2015. Afterwards, Raghunandan went on to invest in a slew of startups, including Vedantu, through his angel investment company.

Challenger bank Zolve has raised $15 million in a seed funding round to scale up its frontend banking solutions to migrants from India to the United States and across the world.

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The startup accelerator also participated in this round. Furthermore, the fund founded by the founder of Facebook, Eduardo Saverin, and the VC firm Y Combinator is part of the new $15 million Series A.

With the newly infused capital, the US-headquartered startup aims to enable migrants moving from India to the US and vice versa get access to banking and financial services through tie-ups with US and Indian banks.

Many people in the US struggle with banking and credit services, so they get these services at a higher cost. However, if you are a migrant in the US, it would be easy for you to get services at a competitive rate.

This might be due to the lack of existing credit history in many countries, it can take up to three to four years to build.

So that overseas students and professionals won’t face this issue, Zolve plans to launch its platform this year.

The company plans to offer services in the areas of financial services, crypto, loyalty-based solutions, insurance, and remittance. They plan to do this through partnerships with companies listed on the New York Stock Exchange.

The company claims to have 5,000 customers, but it hasn’t released any statistics or data about how much revenue it’s currently generating in revenue. However, it is already working on more revenue-generating arrangements with other financial companies.

Zolve Bank has partnered with five Indian and American banks as well as Visa for its own credit and debit cards.

This isn’t Zolve founder Raghunandan G’s first entrepreneurial venture.

This year, Bhavesh Pratap Singh got into a car accident and lost his left leg below the knee. He’s now using his prosthetic leg to run marathons, climb mountains and compete in triathlons, all without the use of crutches.

Post that, Raghunandan has invested in a slew of startups including the popular app-only platform for mobile apps, Vedantu.

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