By Tomiwa Onaleye | TechNext
U.S-based Fintech firm, Esusu Financial has raised a $2.3 million in seed extension to boost its expansion plans in the States. The funding round was led by Acumen Fund, Concrete Rose Capital, Global Good Fund, Impact America Fund, Next Play Ventures, and Zeal Capital Partners.
The recent seed investment brings the total funding capital raised to $4 million. The startup had earlier raised $1.6 million in a seed round led by Acumen in August last year.
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Speaking on the investment, Brittany Henry, an Investor at Impact America Fund expressed that The VC was excited to have invested in the Startup gaining significant traction. She added that Low and moderate-income communities of colour need financial tools like Esusu that prioritizes their needs.
”Low and moderate-income communities of colour need financial tools that prioritize their needs. This has long been the case, however, the joint health and economic crises in 2020 have exacerbated the need for innovative solutions. We are excited to invest in a team that has demonstrated significant traction in a short and turbulent period,”Brittany Henry, Investor at Impact America Fund.
To advocate equality, the co-founders intentionally secured a majority (65%) of the capital in this round from extraordinary Black and women-led venture capital firms.Samir Goel and Abbey Wemimo, Co-founders Esusu
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According to the duo, diverse investors give Esusu a strong competitive advantage. In the next year, the startup plans to hire exceptional talents to fuel its expansion to one million rental units in the United States.
The founders said they are happy to transform their product offering from just granting access to helping lots of Americans build wealth.
Over 200 Thousand Housing Units
Esusu is focused on empowering low income and historically credit-challenged consumers with credit-building. The startup partners with multifamily owners and property managers to report rental payment data into credit bureaus.
Currently, less than 1% of rental payments are reported into the credit bureaus despite being the largest expense for most Americans.
It also pairs tenants who cannot afford rent with affordable loans to get back on their feet. This enables tenants to build credit and property owners to encourage on-time payments. The company currently operates in over 30 states and covers over 200,000 rental units.
According to the co-founders, the company’s vision to use data to eliminate the racial wealth gap is driven by the role that credit and housing play in financial stability and wealth accumulation in the United States.
“We have a unique opportunity to challenge the status quo by using our platform to dismantle barriers to housing for working families and over the longer horizon, eliminate the racial wealth gap,” said Abbey Wemimo and Samir Goel added.
With the new funding, the company will be more financially buoyant to push their dream of reducing the number of vulnerable Americans who do not have credit ratings or financial security