Tally built the first automated debt manager to help consumers pay down credit card debt by analyzing financial profiles, offering eligible users a lower-rate line of credit, and automating payments to reduce interest and late fees. The company has paid more than $1 billion in credit card debt for members and saved members $1.2 million in late fees in 2021 alone. Tally reports it nearly tripled its annualized recurring revenue (ARR) in the past year and says its offered lines of credit carry APRs on average 30% lower than members’ credit card APRs. The average Tally member is enabled to get out of debt up to three years faster, according to the company. Tally plans to use new funding to grow the business and further expand its automated debt pay-down system and product offerings. Tally builds automation technology to manage consumers' financial jobs, initially focusing on paying down credit-card debt via its Tally Card service and a new Tally Save savings vehicle. The company says it spent three years building underlying infrastructure that ingests financial data, makes algorithmic decisions and then moves money or lends to execute those decisions. Tally Save is free, in beta, takes roughly 35–45 seconds to set up, and has over 30,000 people on its waitlist. The startup reports it was managing about $250M in total credit-card debt toward the end of last year and is now approaching $400M. Management says it funds assets via the ABS market and uses a network of banks to hold FDIC-insured deposits for Tally Save. Product roadmap priorities named in the interview include student loans, credit-score improvement, preventing overdraft fees, and later expanding beyond debt into retirement and long-term investing. Tally offers an automated app that helps users manage and pay off credit card debt using algorithms and AI. The app debuted on iOS in June 2017 and launched on Android about a year later. Users scan their credit cards and, if they meet a prerequisite credit score (above 660), may be offered a line of credit at rates between 7.9% and 19.9% depending on balances and behavior; Tally prioritizes payments by APR and revolving balance and can consolidate debt into a personal loan funded by banks. The company charges no annual or origination fees, refunds late fees when it makes payment mistakes, and provides features like monthly bill reminders and the Tally Advisor debt-free date calculator. Tally cites operating metrics including 90% one-month retention, roughly one-third of users opting to only manage payments (not take a loan), and a claim that users paying the minimum can eliminate debt in 12 years. The San Francisco–based company, founded in 2015, is available in multiple states and plans to expand to all 50; it recently raised capital to support growth. Tally launched a mobile app that consolidates users' active credit cards and a linked checking account to create a plan to avoid late fees, reduce balances, and minimize interest costs. The app uses algorithms that factor in credit score, balances, promotional rates, and spending behavior to recommend payment strategies and can alert users to due dates and accept payments directly. In some cases Tally offers its own loan at a lower interest rate to accelerate debt payoff. The company says its longer-term goal is to automate payments rather than only nudging users, and it has pursued state-by-state licensing to underwrite loans and make payments on users' behalf. Today Tally is available in California, Florida, Illinois, Ohio, Massachusetts, New York, Texas and Wisconsin and plans to operate in all 50 states by the end of the year. Before launch the company raised $17 million to fund product rollout and broader marketing; Jason Brown is the founder and CEO. Tally provides an app that lets users scan their personal credit cards, run a brief credit check, and authorize Tally to pay those bills from a Tally-issued line of credit. The service is designed to help customers avoid late fees and other card-related charges while offering an APR lower than the average APR on their cards. If customers carry a Tally balance, the company earns interest at that lower APR. Tally has operated in stealth for more than a year, tested its service with beta customers for about three months, and currently has eight employees. The company plans a phased rollout to bring users onto the app and use its Series A to increase awareness. Tally will need to raise institutional capital and form partnerships with financial institutions to fund the lines of credit and prove its customers are good credit risks.

Total raised

$187M

Funding rounds

5

Latest round

Series D

Latest activity

Oct 2022