B9 payday advance scores $2.6 million
B9, a startup offering digital banking services and payday advances to underbanked people, has raised $2.6 million in new seed funding, the company told Axios.
Why is this important: With inflation rising and access to credit becoming more expensive and difficult to obtain, more and more consumers will be looking for attractive financing options for their day-to-day expenses.
Details: B9’s new funding round, which brings the company’s total funding to $7.5 million, was led by Sky Light Invest and includes investments from Mbanq and the founders of Wrike.
How it works: B9 leverages data on employment and economic behavior to secure payday advances, positioning itself as an alternative to high-interest credit cards and payday lenders by offering interest-free advances on future earnings.
- To be eligible, users must share payroll data and set up direct deposits with the platform — but once integrated, the startup offers mobile banking and a Visa debit card with 5% cash back.
By the numbers: B9 makes money from debit card interchange fees, but most of its revenue comes from monthly subscriptions.
- These include a $9.99/month plan that lets users access up to $300 upfront and a $19.99/month version that will cover up to 100% of their future paychecks. pay.
- According to the founder and CEO of B9 Sergio Terentevthe company has increased its revenue to ARR $2 million in the last 11 months since its launch.
To note : While the company originally targeted gig workers and the immigrant community, it has made inroads with a broader demographic of young people between the ages of 20 and 35, Terentev says.
- This includes growing from 30% of its user base with full-time jobs at the start to 60% today.