stiltsWhich began as an immigrant financial services provider, has raised $14 million in Series A funding led by Link Ventures as it expands its focus to include a B2B offering.
In addition to the capital increase, the San Francisco-based fintech company said it has entered into a new $100 million credit line to lend to its customers, bringing its total equity and debt financing since its inception in 2015 to $375 million.
The capital increase coincides with the launch of the company. anbo, which describes it as a “loan-as-a-service” product “that allows any business to create and offer a loan product without the need for a bank sponsor.” The company said it also followed up with a 4x increase in annual recurring sales in 2021, although it declined to disclose exact sales figures.
Notably, the new product transforms Stilt from being a strictly consumer-focused offering into a B2B offering that could become a major revenue generator, said co-founder and CEO Rohit Mittal.
“This market itself is no more than 100 times larger than our first product,” he told gaming-updates. “He has the bulk of the infrastructure. We will be the layer on which all these companies can launch products.”
Because Stilt has a government credit license and an existing compliance system, it says it can help companies develop their own loan offerings, managing “the entire issuance, payment and credit reporting complexities” for them. It can also provide them with loans up to $1 million.
A pilot program has been established with various initial clients. But as of today, Stilt said, any fintech or digital bank that wants to offer its customers a loan creation tool, revolving line of credit or personal loan can do so using its API-based product. Using a single API, a financial services company “can be up and running in as little as two weeks with a few short lines of code,” Mittal says.
“We spent five years on stilts buying government bonds, building our credit stack and refining our risk model,” Mittal said. “Now we are opening this entire stack so that others can create their own innovative loan products in just a few weeks. This is the fastest way to democratize the creation of credit and debt across the board. ,
Founded by immigrant visa holders, Stilt claims to have lent money to people in more than 150 countries.
“The core idea started with helping international students access better, more affordable loans,” Mittal said. “I went to Columbia University and couldn’t rent an apartment because I didn’t have a loan, so I had to sleep on someone’s couch for weeks. Every landlord asked me about my credit history or guarantors.
There are other immigrant-focused fintech companies in Houston, including WelcomeTech, TomoCredit and Fair, all of which have raised venture capital investments over the past year.
Mittal thinks the difference between stilts is that “many other immigrant-focused startups don’t offer access to credit.”
The company plans to use its new capital to expand its 30-person team and accelerate product development with the goal of launching new products and adding new features to existing ones in the coming months. It will also invest in broader marketing efforts.
Lisa Dolan, president of Link Ventures, said her company is ready for “the team’s deep understanding of the lending infrastructure and its broader mission of providing credit to those who deserve credit but are forgotten in traditional finance.”
“We’ve seen many companies focused on this mission, but few as versed in credit infrastructure and acquisitions as this team,” he said. “We see different neobanks for each demographic and players offering loan products with alternative data. Everyone has a role to play in this mission. We believe that Stilt is a great player in this ecosystem given the lending infrastructure.
The funding also included Petroshka Investments, Hillswain Capital and angel investors, including Gokul Rajaram, former Stripe COO Claire Hughes Johnson, Checkout.com CTO Ott Kaukwar, Superhuman CEO Rahul Vohra, Josh Buckley and others.
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