SeedFi bags USD 65 million through equity and debt financing

Source: Built In San Francisco

SeedFi is a San Francisco – based financial health technology start-up that provides financial products to a lot of native Americans. The company has recently announced to have raised USD 65 million in equity and debt financing with USD 15 million in equity and USD 50 million in debt.

Being in debt is one of the biggest pressures that a person can get onto his/her shoulders and the struggle is real. SeedFi is that one start-up that is focussing on this problem and offering financial products to aid people and help them get out of their debt cycle. The start-up helps people in saving credit to get out of debts by building their credit, saving their money, have access to their funds and basically plan their future out of their debt cycle, as mentioned in a report by Tech Crunch.

Founded back in 2019 by Rodrigo Menezes, Eric Burton, Greg Berman, Bernardo Menezes and Jim McGinley, SeedFi offers its unique services to some of the most vulnerable lot of the society and offers financial products to aid them in having improved financial health with lower-cost access to opportunity and capital for them to start saving and build some credit trust, according to the company profile on Crunchbase.

Eric Burton, co-founder says that he can relate to the situation of its customers because he himself grew up in a super poor family in Central Texas. He mentioned that he had experienced all the struggles of low income and the necessity of taking high-value credit to get through the day or week or month. He added that he remembers that he too was trapped in the debt cycle for a very long time.

According to a report by Tech Crunch, it is mentioned that SeedFi wants to tackle the problem at its root. The start-up has reportedly helped its initial customers to have built savings worth USD 500,000 even during the peak of COVID-19 pandemic.

SeedFi offers two plans to the public in its offer, first is the company’s Borrow and Grow plan that is specifically designed to be a more affordable alternative solution to instalments. This plan provides users with immediate cash or access to funds while also helping them to save credit. The other plan is for long-term saving, the credit building product where customers tend to save as minimum as USD 10 with every paycheck which consequently allows users to build their Credit score and generate USD 500 in savings within just six months. Mind you, this is just an example and you can take out funds from every paycheck at your own convenience.