New York-based Kashable, a provider of employer-sponsored “socially responsible” credit, has closed a $25.6 million Series B round co-led by Washington, D.C.-based Revolution Ventures and West Coast investor Moneta Ventures. Other participants included with EJF Capital (Washington, D.C.) and Krillion Ventures (Miami, Fla.).
Co-CEOs Einat Steklov, a Columbia Business School graduate, and MIT engineer Rishi Kumar started Kashable in 2013. The two previously co-founded Coral Capital Solutions, which provides commercial finance to small- and medium-sized businesses.
‘Financial Wellness’
“Our unique underwriting model is holistic, considering a number of factors to increase accessibility. Kashable loans are purpose built to drive employee engagement and to deliver comprehensive financial wellness solutions,” said Kumar.
“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,” said Steklov. “Kashable’s program provides employers with a free, innovative software solution to empower their employees with inclusive financial wellness offerings.”
Subsequent to the Series B, David Golden, a managing partner at AOL founder Steve Case’s Revolution Ventures, and Moneta co-founder Meirav Har Noy will join Kashable’s board. So far, the financial wellness startup has raised $45.6 million in equity, besides $175 million in debt capital.
Golden said Kashable’s “deep integration with payroll systems” broadens access to affordable credit while allowing individual employees to improve their credit scores. Noy said Kashable’s financial wellness goal “resonates deeply with our commitment to advancing responsible and inclusive fintech solutions.”
Commercial Real Estate
MacKenzie Companies
Advertising / Media / Communications / Public Relations
Nevins & Associates
Financial Services / Investment Firms
Chesapeake Corporate Advisors
Commercial Real Estate
Monday Properties
Venture Capital
Blue Delta Capital Partners
Internet / Technology
Foxtrot Media
Growth Momentum
Kashable has advanced over 300,000 loans to employees at over 250 firms, including through Cigna, Reid Health, Huntington Ingalls, Alight Solutions, and more. Its loans average $4,000 and are issued via companies’ human resources information and payroll systems. Nearly half of Kashable’s customers use the loans to pay down more expensive existing debt, and enjoy access to educational resources, such as credit monitoring, individual financial coaching, and budgeting tools, to better manage their finances.
Steklov told TechCrunch that most of Kashable’s customers see an improvement in their credit score. In fact, two-thirds see improvements of between 40 and 50 points, helping them move up to near-prime category. “That makes a difference from being able to borrow or take out a mortgage on a house,” Steklov said. TechCrunch said Kashable is growing at 50% rates and its loan volume had risen to an annual rate of $300 million.
Last year, Kashable announced a partnership with SecureSave, a Washington state company that runs an emergency savings program for employees. The deal allows the two companies to lend to each other’s customers, subject to needs and eligibility.
