Financial Wellness Platform Kashable Raises $25.6 Million
A FinTech that helps employees access lower-cost credit options has announced a significant funding raise.
About the round:
Kashable has revealed a new $25.6 million funding round. The Series B was co-led by Revolution Ventures and Moneta Ventures, while EJF Capital and Krillion Ventures also participated. The company indicates that the capital will help fuel the platform’s expansion as well as the development of additional features and services. It also intends to grow its research and development team, which will work to enhance the company’s underwriting models and products.
New York-based FinTech Kashable offers a platform meant to help meet the financial needs of employees by allowing employers to offer their services as a benefit. Through Kashable, employees have access to low-cost credit as well as financial resources. Some of the features offered as part of the platform include credit monitoring, individual financial coaching, budgeting tools, and more.
According to Kashable, more than 2.5 million employees currently have access to their loan products, with nearly half of the borrowers using their funds to pay down existing, higher-interest debt. The average loan size is $3,500 to $4,000. Not only does Kashable note that their loans are meant to compete against more expensive credit options but they also point out that they serve as an alternative to borrowing from 401(k) or other retirement accounts.
What they’re saying:
Speaking to the idea behind Kashable, the company’s co-founder and co-CEO Einat Steklov explained, ” In a world where financial instability can strike anyone, at any time, Kashable is taking a bold stance: access to credit shouldn’t be a privilege, it should be attainable. Kashable’s program provides employers with a free, innovative software solution to empower their employees with inclusive financial wellness offerings.”
The startup’s other co-founder and co-CEO Rishi Kumar added, “We’re committed to scaling the product offering and creating a path for more employees to gain access to responsible credit in ways that have not been historically available to working Americans… Kashable loans are purpose built to drive employee engagement and to deliver comprehensive financial wellness solutions.”
Meanwhile, commenting on the firm’s investment in Kashable, Revolution Ventures Managing Partner David Golden stated, Kashable’s unique underwriting model and deep integration with payroll systems have enabled the company to broaden access to affordable credit while allowing individual employees to improve their credit scores. We look forward to partnering with the Kashable team to accelerate the development of additional financial wellness services.”
Without seeing Kashable’s specific rates, it’s hard to know exactly how much more affordable their loan products are than others. Setting that aside, the platform sounds like a solid idea for both employees and employers. Personally, I think the most interesting point made by the platform is that it’s an alternative to 401(k) loans — which may seem like a good idea due to their low interest rates but can actually lead employees to miss out on important growth.
Given the positives Kashable has going for it, it’s not surprising that the startup would find success with investors. With this Series B under its belt, hopefully the company will be able to achieve the growth and expansion it has its sights set on.