Line Secures $25 Million in Equity and Debt to Build an Inclusive Financial System; Already serving more than six hundred thousand working-class Americans in just over six months
BIPOC investors, immigrant serial entrepreneurs, social impact and women-led funds are joining forces to support the world’s fastest growing financial network – Line.
SAN FRANCISCO, May 3, 2022 /PRNewswire-PRWeb/ — Doublethe company that is building a modern and inclusive financial network, announced today that it has obtained $25 million in Equity and Debt, with Massive lead the round. The line is a Public benefit corporation mission-driven to provide unprecedented access to financial services with uncompromising quality and without restrictions like income type, income level or credit history. The long-term vision is an inclusive and interoperable financial network that replaces today’s fragmented mess that forces those who can least afford it to subsidize ecosystem inefficiencies with fees and interest rates. higher, or simply prevents them from accessing products so as not to adapt to obsolete products. Criteria.
“Most of the financial industry is focused on the same group: people with a monthly or bi-weekly W2 paycheck and a mix of checking, savings and maybe investment accounts – and still pegged primarily to men. Meanwhile, a growing portion of the population earns a living working through a combination of gig work, hourly jobs, government assistance, and cash wages. At least 50% of them are women who earn a fraction of what men do at the same job and lose their pay when they take time off to take care of their children’s responsibilities,” said Akshay Krishnaiah, founder and CEO of Line. “My own immigration experience of India where I was raised by parents from extreme poverty inspired me to create Line to provide a financial product that is relevant, inclusive and easily accessible to everyone – without the added weight and cost of predatory practices that constantly tell people people who are worth it and who are not.”
Despite being skilled, banked, working in essential jobs and working hard to spend less than they earn, more than three billion people worldwide and more than 100 million people in the United States cannot access commonly needed financial services. This group has a poor credit history, which is considered non-traditional working conditions and/or traditional working conditions with poor company policies that make their income irregular (i.e. lack of paid vacation, loss of childcare credits, etc.). Rather than leading to new solutions that cater to this group where they need to raise them, it has instead led to a predatory trillion dollar financial services industry that includes things like cash advance apps funds, check cashing services, credit company loans, pawnshops and title loans.
Line investors know that existing financial institutions were built by and for a subset of the population, and that building something new for those excluded from existing systems is essential to truly creating financial inclusion. Their backgrounds are varied, but their vision for a better future is unique: Line. The round was led by a carefully chosen group of investors aligned with Line’s mission as a public benefit company – led by Massive and tracked by TASC Ventures, as well as a group of BIPOC investors, funds at social impact and women-led funds like Goodwater Capital, SustainVC, Avesta Fund, Strada Education Network, The Josephine Collective, Overtime VC, Techstars and Kelmhurst. They are joined by angel investors Alex Harotechnical director of MyMoneyKarma; Jean-KimSendbird CEO; Chris Nguyen, co-founder of LogDNA; Ranjan Soups, CEO of Sardine; and Ethan Austin.
Line’s proprietary technology both dynamically adapts to meet individuals where they are in their financial journey and actively considers micro and macro trends, enabling it to support customers when neither financial firms neither public and corporate policies can. For a nominal monthly fee, Line offers users an emergency fund line without interest, credit checks, or the need to establish a credit history or a stable income. Line also helps people avoid overdrafts and late payments, actively monitors each customer’s credit, offers users up to 20% cash back on daily transactions and will soon help them build credit on these transactions. .
“We are built on a partnership rather than a predatory model, with the fundamental belief – having lived it – that people do the best they can with what they have for themselves and their families,” Akshay continued. . “By knowing this to be true and coming from a place of trust, we are able to have an industry-leading refund rate and incredibly higher customer retention than credit cards and products for the ultra-rich would be the envy.”
Since its quiet release last July, adoption has been rapid and steady, with more than six hundred thousand people registered in 5,200 cities in 50 states. Other boosts since the release of stealth just over six months include:
- Become profitable with nearly 300% quarter-over-quarter revenue growth
- Adding over $1 million in customer lifetime value every month
- Go from instant disbursement of cash for emergencies in the thousands to millions per month
- 100% month-over-month user sign-ups, over 70% of which come organically
- Industry-leading loss rates, proving overlooked customers are actually good bets if you serve them with intention
“Most of the investment and innovation in personal finance over the past 20 years has been focused on bringing more products and features to the same affluent customers who already have plenty of choice. Line, Else hand, has thought through and carefully built a financial system for the significant underserved population. The incredible growth and performance the company has experienced over the past year demonstrates to the world that the underserved population deserves access to great financial products,” said Ari Newman, Managing Director at Massive. “We are proud to be part of this important mission and to work with Line to build a long-awaited solution for millions of people.”
The new capital will go towards growing Line’s team and expanding its service. The company’s latest funding round follows the success of its previous $2 million round which included fixtures such as Amrish Raufintech unicorn Pine Labs CEO; Andre HadadCEO of Turo, Avinash Gangadharantechnical director of Turo; James BarreseSVP of Technology at Chime; Karthik BalakrishnanPresident of Actual; Sri Narasimhan PayPal angels; Ivo DistelbrinkExecutive Vice President and Chief Asia Pacific at Fiserv with CMFG Ventures Discovery Fund, Techstars, TASC Ventures, Strada Education Network and Avesta.
To learn more, visit: https://useline.com/.
On the line
Line is building a modern, inclusive, and interoperable network of people, tools, and services that work together to put more money in the pockets of the average American. Line enables individuals to build trust and creditworthiness without the need for a credit history, credit score, traditional work arrangements or a stable income, while providing essential financial services such as instant cash in an emergency for a monthly subscription as low as $1.97/month via its iOS and Android apps which are powered by the Line network. Line is founded and backed by a team of players who come from humble beginnings, just like their users, and have built financial platforms that earn more than $5 billion year-over-year personal finance apps that rank #1 in over 27 countries and the #1 global platform for the underbanked and unbanked globally. To learn more, visit https://useline.com.
Kate HeleteLine, 805.458.5093, [email protected]