Credit-Building Platform Stellar Raises $7 Million Seed Round
Stellar logo

Credit-Building Platform Stellar Raises $7 Million Seed Round

Thanks to the current FinTech landscape, there are now several ways of establishing credit. This includes options such as credit-builder loans, debit cards that act as secured credit cards, and even regular credit cards and loans that utilize alternative decision-making methods. Now, a startup with yet another idea on how to help consumers improve their finances has garnered a significant investment.

This week, Stellar announced that it had raised $7 million. The oversubscribed seed round was led by Acrew Capital, while Trust Ventures co-led. Accomplice Ventures, Fiat Ventures, Vera Equity, Permit Ventures, Kindergarten Ventures also participated along with angel investors. With the money, the company will officially launch its product, with the public beta now underway.

Stellar is a platform that aims to help consumers build credit. To do this, the service will consolidate users’ bills and pay them on their behalf. In turn, Stellar will report these on-time payments to credit bureaus to establish positive history. Additionally, the company notes that customers can earn rewards and cashback that can be redeemed when paying their connected bills.

Currently, the company has a waitlist open for its service, with those who sign-up also being entered into a sweepstakes that will see one winner seeing up to $10,000 of their bills paid for a year, 20 winners scoring $500 to be applied to their bills, and an additional 300 winners receiving $100 in bill pay credits. Looking ahead, Stellar says it also plans to add further money management tools and financial literacy resources, while also working with other brands to feature loan and credit card offerings.

Speaking to Stellar’s mission, Founder and CEO Lamine Zarrad explained, “We created Stellar to provide credit access to the 132 million Americans who currently have poor credit or no credit. That’s in large part because traditionally, credit scores are made up of a person’s payment history on loans and credit cards. This means bills for everyday purchases like rent, utilities, and Netflix go unreported… We want Stellar to let their bills pay them back–something they’ve deserved for a very long time.”

Zarrad went on to say, “As an immigrant and a former enlisted Marine, I know how difficult it is to build and maintain financial stability. With Stellar, we wanted to distill years of learnings into a simple app that transforms ordinary household bills into value-generating assets. I am absolutely thrilled to embark on this journey with an amazing crew and top-notch investors!”

As noted, there are a variety of FinTech startups looking to change the way credit is established or utilized. Nevertheless, Stellar’s platform seems to have another spin on the idea and one that could prove popular. With the company just now launching its public beta, we’ll soon get to see exactly what the product has to offer and whether it has what it takes to compete with other existing concepts.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories:, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...