Debt Payoff App Tally Raises $80 Million
A well-known FinTech app that offers debt consolidation to consumers has just secured a major investment. Today, Tally announced that it had raised $80 million in its latest funding round. The Series D was led by Sway Ventures, while Menora Mivtachim along with previous investors Kleiner Perkins, Andreessen Horowitz, Shasta Ventures, Cowboy Ventures also participated. With the new funding, Tally plans to further expand its debt pay-down platform and continue to grow its business. To date, the company has now raised a total of $172 million, including a $50 million Series C in 2019.
Tally is a debt consolidation app that helps consumers pay down their credit cards. To do this, members are first offered the chance to apply for a line of credit that will likely have a lower APR. If approved (and the customer accepts), the app will automatically pay off the customer’s credit card balances. From there, users will make a single payment to Tally each month.
This latest investment round comes as Tally’s growth continues to reach new milestones. According to the company, in 2021, app users saved more than $1.2 million in late fees thanks to the platform. Additionally, the line of credit offered to members helped them save an average of 30% when compared to their credit cards APY. In turn, Tally says that their platform helps the average user get out of debt up to three years sooner.
Commenting on the latest funding at Tally, Sway Ventures general partner Ken Denman — who will join the Tally Board of Directors as a result of the deal — said in a statement, “Tally is a true industry innovator for its distinctive use of technology to help more consumers get out of debt, and we look forward to partnering with the Tally team to help expand their product offerings and reach, particularly during a time when credit card balances are nearing all-time highs.”
Meanwhile, Tally CEO and co-founder also touched on the idea behind the app, saying “Credit cards are designed to trap people in a cycle of debt. Our debt-free system helps consumers pay off credit cards faster, empowering them to take control of their finances and make real progress towards their financial goals.”
While this $80 million Series D falls short of being a “megaround,” it’s still a significant fund raise for the FinTech. Plus, with interest rates on the rise, demand for a debt consolidation tool could certainly increase as well. Put into that perspective, it’s easy to see why investors would take a shine to Tally. In turn, perhaps a Series E “megaround” could come to fruition in the coming months.