FinTech Stellar closed an oversubscribed $7 million initial funding round and launched a public beta on its credit-building and financial tools platform, according to a Monday (March 14) company press release.
Stellar will also develop “comprehensive money management tools, partnerships for loan and credit card offerings, and financial literacy resources,” the company said.
“We created Stellar to provide credit access to the 132 million Americans who currently have poor credit or no credit,” Stellar Founder and CEO Lamine Zarrad said in the announcement. “That’s in large part because traditionally, credit scores are made up of a person’s payment history on loans and credit cards.
“This means bills for everyday purchases like rent, utilities and Netflix go unreported. These are people who pay their bills and get zero reward for it. We want Stellar to let their bills pay them back — something they’ve deserved for a very long time,” he said.
Stellar allows users to build credit through their everyday purchases, opening opportunities not just to build their credit score, but also to gain financial security for themselves and their families. The platform consolidates users’ bills and allows them to build credit through the bills they pay, then reports their monthly payments to credit bureaus.
Acrew Capital and Trust Ventures co-led Stellar’s $7 million funding round, with participation from Accomplice Ventures, Fiat Ventures, Vera Equity, Permit Ventures, Kindergarten Ventures and angel investors.
Related: MoneyGram, Stellar Foundation Team with Techstars on a LatAm Blockchain Accelerator
Last week, the Stellar Development Foundation and MoneyGram International Inc. announced a collaboration with Techstars, a global network that invests in entrepreneurs. The companies will also create a mentorship program aimed at Latin America’s financial system.
The three-year mentorship initiative will select up to a dozen FinTech startups to participate in a 13-week immersion program. Under the program, entrepreneurs will work with mentors from the three companies.
Applications for the first class of startups is scheduled to open on July 25. The deadline for applications is Oct. 12.
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