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ZestCash raises USD73m for 'smart' payday loan alternatives
Online 'payday loan' company ZestCash has raised USD73m in its second round. The funding is split between a USD23m equity round led by Matrix Partners, and USD50m debt financing from Victory Park Capital, obtained in order to grow its lending capacity. The California-based company currently operates in Utah, Idaho, South Dakota and Missouri, and with the new funding will expand into other US states. It will also build up its engineering team.
Deal Details
- Status completed
- Amount US$73m
- Investors
- Target ZestCash
ZestCash's proprietary data technology is designed to undercut short-term unsecured loan providers, through more intelligent customer credit score analysis. On its website ZestCash differentiates itself forcefully from typical 'payday loan' companies, claiming that its average interest rate of 180% is half as much as a payday loan including rollover fees. The company also lends for between three and eight months, rather than a few weeks. ZestCash CEO Douglas Merrill says it has already lent several millions of dollars.
