Although ZestCash claims not to be a payday lender, it’s the same customer. What’s worth noting is that lending to the underbanked can attract investment dollars and VC funding. Here is the press release from GIGAOM.
ZestCash, a next-generation loan service for the underbanked, has raised $19 million, including an $8 million line of debt financing, to expand its data-driven approach to offering short-term loans. The company, led by former Google CIO Douglas Merrill, received $11 million in Series A funding from Lightspeed Venture Partners and GRP Partners with participation from Flybridge Capital Partners. Lighthouse Capital Partners has added $8 million in debt financing that will go toward offering more loans to customers.
