FinTech News
Fizz Announces $14.4 Million Seed Round
A credit-building debit card FinTech has raised a new early-stage round of funding.
About the round:
Fizz has revealed that it raised $14.4 million. The seed round was led by Kleiner Perkins, while V Angel, Y-Combinator, New Era Ventures, and others also participated. Previously, Fizz raised a $125,000 pre-seed round in 2021.
With the new capital, Fizz plans to build its team and create new product lines. Additionally, it intends to invest in marketing in order to build awareness.
About Fizz:
Taking its name from the mission “financial independence for Gen Z,” Fizz offers a debit card product that builds credit and is aimed at students. Using proactive AI budgeting tools, the platform allows customers to avoid debt while also building a positive payment history. Additionally, the app features gamified financial literacy courses to further help students learn to manage their money.
Applying for Fizz does not require a credit check, cosigner, or security deposit. Instead, customers are just required to provide their information and link a bank account with at least $150. Then, cardholders will be issued an unsecured line of credit and the company will make monthly payment reports to credit bureaus.
According to the company, in the past 12 months, Fizz grew to reach more than 300 colleges (from 0). They are also on track to surpass a nine-figure annual card volume total.
What they’re saying:
In a press release, Fizz co-founder and CEO Carlo Köbe discussed the need for their product, saying, “The concept of credit can be so daunting and inaccessible for younger people that they delay building credit history until it’s too late. Traditional cards are hard to get approved for, and even if you do, high-interest debt can trap students for decades.”
Meanwhile, president and co-founder Scott Smith stated, “Our card and app provide a clear path for younger generations to build credit early, so they’re not caught off guard when they need it most—for renting apartments, refinancing student loans, or passing background checks for their first real jobs.”
My thoughts:
While Fizz may not be the first credit-building debit card on the market, it sounds like a winner overall. Looking at their site, it seems as though they also have a strong angle by working with campus vendors to offer rewards on debit card purchases. Also notable (in light of recent events) is that the company partners directly with Lead Bank.
Given those factors, I can see why Fizz has attracted investor investment. Personally, as a fan of these types of products, I’m also rooting for it going forward.
Author
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