The Venture Codex

Participated · Seed · Sep 2021

Grow Credit operates a platform that combines a small-dollar loan with a virtual MasterCard to let consumers build credit by managing subscription payments. The MasterCard is issued through Sutton Bank and the service reports loan balances to Equifax, TransUnion, and Experian; loans under its premium programs are made by Blue Ridge Bank, N.A. Since releasing its platform nationwide in November 2020, the company says monthly recurring revenue has risen 2000%. Grow plans to accelerate user acquisition, embed its SDK across banks, apps, and websites, and expand its influencer investor team ahead of an A round. The firm has partnered with banks including Blue Ridge Bank, Sutton Bank, and MRV Banks, and with BillGO and College Hunks Moving for biller integration and employee benefit deployments. Grow targets over 100 million consumers with no or thin credit files and provides weekly financial education content to its users. Grow Credit offers credit lines to cover online subscriptions (Spotify, Netflix) and reports those payments to help users build credit. The company uses Marqeta’s platform and the Mastercard network to extend loans and restrict payment access for recurring bills. Grow says users can improve their credit scores by as much as 61 points over nine months. Its product has tiered plans: a free tier with $15 of credit, $4.99/month for up to $50, and $9.99/month for up to $150 of covered subscriptions. Founded by Joe Bayen and launched last year in Los Angeles, Grow was initially bootstrapped and previously raised money from a clutch of core angel investors. The company closed a $2 million seed round with Mucker Labs and individual backers, is pursuing a deal with a large U.S. consumer bank, and plans to launch an Android app in the coming weeks.