Zolve, a neobank catering to skilled professionals relocating to the United States, has raised $51 million in equity financing along with an additional $200 million in debt. The Series B funding round was led by Creaegis, with participation from HSBC, SBI, GMO, and DG Daiwa, while existing investors such as Accel, Lightspeed Venture Partners, Sparta Group, and DST Global also contributed. This latest capital injection will enable Zolve to strengthen its operations in the U.S. and expand into new international markets.

Addressing a Key Financial Challenge for Expats

Millions of high-skilled professionals move to the U.S. annually but often face barriers in accessing financial services due to a lack of local credit history. Traditional banks frequently deny them credit cards, loans, and other essential banking services despite their strong financial backgrounds in their home countries. Zolve aims to bridge this gap by leveraging international credit data, allowing expats to access financial services immediately upon arrival.

Building a Seamless Cross-Border Financial Network

Since its inception in 2021, Zolve has onboarded over 750,000 users and processed transactions worth more than $1.2 billion. By providing credit cards and checking accounts based on credit history from users’ home countries, the neobank ensures a seamless financial transition for expatriates. The company reported generating $25 million in net revenue last year, highlighting its rapid growth and adoption within the expat community.

Expanding into New Markets and Product Offerings

Zolve plans to enter Canada by August and is preparing to expand into the UK and Australia by 2026. The company is also set to introduce new financial products, starting with auto loans, followed by personal and education loans. Expats in the U.S. often face high upfront costs and interest rates for vehicle financing due to their lack of local credit history, and Zolve aims to offer more equitable lending terms.

Leveraging Debt to Underwrite Expat Credit Risks

The $200 million in debt financing will be used to purchase loan books from partner banks, allowing Zolve to underwrite risk for expatriate borrowers. This model helps mitigate the credit challenges faced by new arrivals, ensuring they receive fairer lending terms. By addressing these disparities, Zolve aims to create a more inclusive financial ecosystem for global professionals.

Aiming for Global Financial Connectivity

Zolve’s long-term vision extends beyond serving expats moving to the U.S. and Canada. The company plans to build a globally interconnected financial network that supports individuals relocating between Western countries, as well as those shifting to Asia and other regions. Founder and CEO Raghunandan G emphasized that the lack of communication between financial institutions across borders leads to unfair risk assessments, a problem that Zolve seeks to resolve.

A Growing Market for Expatriate Banking Solutions

The increasing globalization of the workforce has fueled demand for banking solutions tailored to expatriates. Zolve’s rapid growth and investor confidence highlight the potential of the neobanking sector in addressing cross-border financial challenges. With this latest funding round, the company is well-positioned to scale its offerings and expand into new geographies.

Zolve’s successful Series B funding round marks a significant step in its mission to provide seamless financial services for global citizens. With a strong user base, substantial transaction volumes, and a clear expansion roadmap, the company is set to reshape the landscape of expat banking. As Zolve moves into Canada and prepares for future market entries, its approach to bridging financial gaps will continue to drive its growth and industry influence.

Source: TechCrunch