Eyewa Raises $100 Million Series C to Expand Middle East Eyewear Empire
Dubai-based Eyewa, a DTC eyewear platform, secures $100 million Series C funding to accelerate growth in the Middle East, solidifying its position as a regional powerhouse.
Riley King
Zolve, a fintech startup providing financial access to high-skilled and high-spending global citizens moving to the US, has secured $251 million in a new funding round. The round, comprising both equity and debt, will enable the neobank to expand its presence and enter new geographies, further addressing the financial challenges faced by expats.
Every year, millions of highly skilled individuals relocate to countries like the US for new opportunities. However, one major obstacle they face is gaining access to financial services, even after securing well-paying jobs. Traditional banks often deny them credit cards and loans due to the lack of a credit history in their new country, despite having a good credit history in their home country. This becomes particularly challenging when they want to purchase assets like a new home or a car.
Zolve aims to bridge this gap with its neobank, which helps newcomers access credit and banking services on the day they enter the US, without requiring a local credit history. The startup currently targets global citizens entering the US, offering them credit cards and checking accounts using their home credit data.
"Financial institutions in one country don't talk to financial institutions in another country, and that's the problem we are trying to solve," said Raghunandan G, founder and CEO of Zolve, in an interview. The startup's solution has already shown promising results, with 750,000 customers and over $1.2 billion in transactions processed to date. Zolve also generated $25 million in net revenue last year.
Zolve plans to build on this momentum by introducing loans, starting with auto loans and gradually expanding to personal and education loans. The founder highlighted the disparity in car financing options for expats, who are often required to make a 40% upfront payment and face interest rates of around 19-21%. In contrast, local Americans can access cars with a 10% upfront payment and a 6-7% interest rate. By leveraging expats' home credit history, Zolve can address this parity and provide more competitive financing options.
The startup is also set to expand its geographical footprint, with plans to enter Canada by July or August of this year and subsequently move into the UK and Australia next year. Zolve's long-term vision is to create a connected financial network that serves not only global users relocating to the US and Canada but also individuals moving between countries or shifting to Asia and other regions.
Zolve's $251 million funding round is comprised of $51 million in equity for its Series B round, led by Creaegis, with participation from HSBC, SBI, GMO, and DG Daiwa. Existing investors Accel, Lightspeed Venture Partners, Sparta Group, and DST Global also participated in the round. Additionally, the round involved a debt of $200 million to buy expats' books from its partner banks to underwrite risks.
This significant funding injection will enable Zolve to further develop its services and expand its reach, ultimately addressing the financial challenges faced by millions of global citizens. As the startup continues to grow and innovate, it is likely to have a profound impact on the fintech industry and the lives of expats around the world.
In conclusion, Zolve's $251 million funding round marks a significant milestone in the startup's journey to provide financial access to global citizens. With its innovative neobank services and ambitious expansion plans, Zolve is poised to make a lasting impact on the fintech landscape and improve the lives of millions of people around the world.
Dubai-based Eyewa, a DTC eyewear platform, secures $100 million Series C funding to accelerate growth in the Middle East, solidifying its position as a regional powerhouse.
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