TomoCredit, a credit card which lends to “credit-invisible” immigrants and international students with no credit history in the US, has raised $122 million in debt and equity to expand its credit product offerings.
Strategic investors Morgan Stanley’s Next Level Fund and MasterCard participated in the funding round, with debt from Silicon Valley Bank.
TomoCredit said the round was oversubscribed by fintech investors and culture funds, including GoldHouse, Asian Hustle network, and Hyphen Capital.
It will use the new injection of capital to grow its product offering to include auto loans and mortgages.
The TomoCredit card does not require any credit checks, or deposit, and there is no APR.
Kristy Kim, founder and CEO of TomoCredit (pictured), said: “We decided to add more capital for two key reasons. First, we were seeing incredible organic demands in the past two years, and we wanted to hire top talent to keep up with that organic growth.
“Secondly, we want to take full advantage of the newest consumer trends of avoiding high APR products. TomoCredit charges 0% APR with no fees.”
Former president and chief risk officer at American Express, Ash Gupta, recently joined the board of TomoCredit, after retiring from American Express in 2018.
Chaomei Chen, who was previously chief revenue officer (CRO) at Lending Club, recently became acting CRO at TomoCredit to help it expand its credit offerings.
“We are excited to be a part of TomoCredit’s journey as it works to democratize access to credit and build a more inclusive credit landscape,” added Alice Vilma, co-portfolio manager of Morgan Stanley’s Next Level Fund.