Stilt, a Y Combinator alum that gives monetary providers for immigrants without Social Safety numbers or credit experiences, announced at present that it had closed a $7.5 million seed spherical. It also launched FDIC-insured pre-approved world bank accounts today.
The startup has raised fairness from investors, including Liron Petrushka; Hillsven Capital; Streamlined Ventures; Gokul Rajaram; Bragiel Brothers; Fundbox CEO Eyal Shinar; Subsequent Insurance CEO Man Goldstein; Charles Choi of SK Networks; and Y Combinator companions Dalton Caldwell and Kevin Hale.
It also raised about $100 million in debt capital or cash to be used for lending, from Smart Lenders Asset Management, FourthGreen Capital and others.
The startup, which launched out of Y Combinator’s winter 2016 batch, was started by CEO Rohit Mittal, who beforehand worked as a data scientist at PopSugar, and Priyank Singh, a software developer who worked at Amazon unit A9 and Microsoft.
Both experienced firsthand the challenges of renting apartments and securing pupil loans and other monetary services as immigrants to the U.S. and wanted to develop a service that might help others in the same situation.
The corporate uses proprietary technology that scores applicants without credit reports by analyzing a variety of economic and non-financial data to create risk models.
This contains data units from universities, half a million employers, and tens of millions of job positions, plus data from credit bureaus and banks, in addition to the type of visa an applicant has and their financial history.
The interest rate for Stilt’s loans is usually about 13.5% to 14%, providing candidates a better alternative to conventional lenders or payday loans.