Keystone National Group provided $50 million in debt financing to Deserve, a new credit card company targeting millennials. The proceeds will be used to fuel growth in account receivables and help jumpstart first-time credit owners’ financial journeys.
“Since launching the Deserve brand in October of 2017 and addressing the needs of young people who are new to credit, we’ve seen a huge response from young adults and college students across the nation,” said Kalpesh Kapadia, CEO and founder of Deserve. “The strong initial response to our brand and high demand for our products validate the fact that Gen Z and millennials need access to fair credit products that allow them to build credit history and reward them along the way.”
The financing closed on the heels of the company’s recent $12 million funding round led by Accel, with participation from Aspect Ventures, Pelion Ventures, Mission Holdings, Alumni Venture Group and GDP Venture, which Deserve used to launch its new credit cards and to expand its audience to include all 40+ million college students and young adults in the country.
Deserve uses machine learning and alternative data, instead of just relying on FICO, to determine credit-worthiness.
