Goldman Sachs, others back a $250M investment in fintech startup Deserve to power real-time credit card economy | Tech News | Startups News

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As countries around the world put the pandemic behind them, business activities are picking back up again to the pre-pandemic levels as businesses experience a surge in consumer demands. A recent study from the Mercator Advisory Group found that small businesses will drive more than $700 billion in credit card transactions by 2023. Unfortunately, many small businesses face hurdles in issuing commercial credit cards for these transactions. That’s why this Silicon Valley tech startup sets out to remove the complexity of launching a credit card.

Deserve is a Palo Alto-based fintech startup that’s transforming credit cards into software that lives on mobile and in the cloud. Deserve offers fair credit products for young people and a cloud-based credit card platform for businesses. Using machine learning and alternative data, Deserve provides partners with state-of-the-art underwriting solutions that expand financial access.

To further meet the growing demand from financial institutions, fintechs, and consumers, Deserve announced today it has received a new $250 million credit facility with Goldman Sachs, Cross River, and Waterfall Asset Management.

In the last year, Deserve’s platform business has successfully launched credit card programs for partners such as BlockFi, M1 Finance, OppFi, Seneca Women, Notre Dame Global Partnerships, and KrowdFit, among others. In 2022 and beyond, Deserve plans to bring innovative card programs that help consumers manage subscriptions, augment BNPL, unlock their home equity as well as card programs for SMBs and commercial customers.


Founded in 2013 by CEO Kalpesh Kapadia and Michael Hallinan, Deserve is powering the future of fintech through digital-first, mobile-centric, highly configurable API- and SDK-based credit card solutions. Deserve partners with financial institutions, fintechs, and consumer brands to develop, rapidly deploy, and power white label and co-branded credit card programs. Deserve is a venture-backed fintech company whose investors include Visa, Mastercard, Goldman Sachs Asset Management, Sallie Mae, Ally Ventures, Accel, Pelion Venture Partners, Aspect Ventures, and Mission Holdings.

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“At Deserve, we’re committed to helping organizations quickly and securely launch any type of credit card product in the cloud, customized to their specific audience – a valuable touchpoint with customers and a must-have in today’s landscape of competitive brand loyalties,” Kapadia said.

“Because our platform is digital-first and mobile-centric, customers can, in turn, begin using their Deserve-powered credit card minutes after application, no plastic required. We’re excited about what this new financing will enable us to do as we amplify our reach and help more fintechs, financial institutions, SMB lenders, and brands connect with and grow their customer base.”

“We’re proud to support Deserve’s growth with our credit facility, and we’re excited to play a role in bringing a more modern and complete credit card experience to consumers nationwide through Deserve’s credit card as a service platform,” said Rahul Jha, Head of Strategic Direct Lending at Cross River Bank.

This $250 million credit facility announcement comes on the heels of Deserve’s $50 million Series D equity raise, led by Mission Holdings, Goldman Sachs, and Sallie Mae with participation from Visa, Mastercard, and Ally Bank in October 2021. Deserve witnessed tremendous growth in 2021 with 650% growth in transactions volume and 800% growth in receivables and this new credit facility should help them scale even higher levels in 2022 and beyond.

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In April 2022, Deserve was recognized by Financial Times and Statista as one of The Americas’ Fastest-Growing Companies 2022, ranked in the Top 10 of the Financial Services category. In November 2021, Tearsheet’s Embedded Awards lauded Deserve as the Best Card Issuing Platform of 2021. Additionally, the LendIt Fintech Industry Awards recognized Deserve as a finalist in the 2021 Innovation in Digital Banking category. Deserve was also ranked #4 on the 2020 Inc. 5000 Series list of the fastest-growing private companies in California.


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