Goldman Sachs Takes Bet on Credit Card Startup Deserve
Deserve is a credit card startup that secured $50 million in a Series C funding round led by Goldman Sachs, according to Business Insider.
Deserve is a U.S. based financial technology company that provides credit cards to nontraditional consumers, like students or those with low credit scores. The $50 million in additional funding brings Deserve's total equity and debt funding to over $147 million.
Deserve first got its start by targeting international students who were not able to obtain credit cards in the United States. The company then expanded to additional consumers who were unable to obtain credit cards due to a lack of credit history.
Deserve relies on machine learning and alternative data to determine who receives credit. There are around 62 million Americans who have shaky credit history. This large demographic is the target group for the start up Deserve.
Goldman has helped Deserve acquire funding as it attempts to perform better than its competitors by getting more exposure in the fin-tech industry.