Dallas-based Yendo has closed its $24 million Series A financing round that will fuel the company’s next stage of growth. It was led by FPV Ventures along with existing investors Human Capital and Autotech Ventures.
The funding marks a major milestone for Yendo, which created the “first-ever” vehicle-secured credit card, providing a prime credit offering to the millions of Americans who previously lacked access to the financial system because of their credit score, according to the company.
“The current financial system is not set up to serve everyone,” Yendo CEO and Co-founder Jordan Miller said. It’s a systemic issue that leaves millions of Americans without affordable lending avenues, forcing them to turn to costly non-bank financial products, according to the CEO.
That lack of options leads many people to rely on “high-interest, non-bank financial products, which costs them billions of dollars annually,” Miller said in a statement.
“We want to transform the way Americans interact with financial services by building a product that can expand access to affordable credit, regardless of consumers’ credit scores,” he said.
With the recent funding, Miller is optimistic about the acceleration of the company’s growth.
The funding will empower Yendo to make key hires, improve the product experience, and help more people by offering the card in more states. As part of the deal, lead investor Wesley Chan will join the board, the company said.
A new way to build credit
Via Yendo, consumers who own their car can tap into the value of their vehicle to gain access to up to $10,000 in revolving credit at a fixed, affordable rate, agnostic of their credit score.
Yendo determines a person’s credit limit based on several factors, such as their income and expenses, as well as the value of their vehicle. That provides equal opportunity to people who have historically been excluded from the traditional credit system, helping them establish and build credit, Yendo said.
The company said that building credit is important to its customers, with 90% citing building credit as a primary reason for applying for the product.
“We’re excited to partner with [MIller] and the Yendo team,” Chan, co-founder & managing partner of FPV Ventures, said in a statement. “[Miller] is a brilliant product developer who has created a product that provides access to affordable credit to a population of consumers who have historically had terrible lending options, if any.”
“This helps level the playing field for consumers, and we’re thrilled to back this mission and team,” he said.
Yendo said it is saves its customers over $85,000 in interest each day and has grown its customer base by 15% week-over-week since launching in 2022.
Yendo was founded in 2021 by Miller, George Utkov, and Daniel Ashy.
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