TomoCredit raises $22M to make credit scores ‘obselete’ – TechCrunch
Summary
TomoCredit, which aims to help young adults who are in good financial health but have no credit score, is no longer just focused on immigrants.Today, Tomo is expanding its focus to a broader group of people in the United States who want to build credit fast, including domestic students and SMBs.As we are getting bigger, we are realizing that the target market we can address is way bigger than what we were expecting. We learned this by talking to other neobanks.Our customers are not in financial troubleOnce you identify them, and give them a card, they spend a lot and dont default. Tomo is on track to do another 1,000% year-over-year revenue growth, she said.Kim declined to disclose how many cardholders Tomo has, but did say that it has received 2.5 million applications over time.The fundraise, Kim notes, was a locked deal before the market turned and valuation was agreed upon earlier this year.The company plans to apply its new capital to diversifying its product offerings, such as offering auto loans and mortgages. Part of its new capital will also go toward hiring more engineers and product folks, Kim said.Interestingly, Morgan Stanleys Next Level Fund and Mastercard participated in the oversubscribed equity portion of the financing, which included participation from GoldHouse, Asian Hustle network and Hyphen Capital. She said she was drawn to back TomoCredit because she was impressed with Kims ability to identify a problem as a young female immigrant and turn it into a new financial product.