A US credit white label credit card business has raised $50m from investors, led by Goldman Sachs.
California-based Deserve – which uses machine learning to provide bespoke cards for consumer brands to universities – was backed by a range of investors including Sallie Mae, Accel and Aspect Ventures.
The fintech said it will use the cash to develop new products, upgrade its platform technology and hire extra engineers, data scientists and marketing staff.
The Menlo Park firm runs cashback rewards and incentive programmes with Mastercard, Amazon and Priority Pass. It also oversees credit education schemes on over 5,000 university campuses including Berkeley, Michigan State and UCLA.
Deserve chief executive and co-founder Kalpesh Kapadia said the technology on its platform “allows us to offer a seamless digital onboarding process for cardholders – a simple process for businesses and consumers alike”.
Goldman Sachs managing director Ashwin Gupta added that the US merchant banking powerhouse was “supportive of Deserve’s mission to expand access to credit, and to simplify the ability for organizations to offer their own bespoke credit card products”.
The start-up currently employs around 60 staff, but plans to boost this to 100 over the next six months. The business has so far raised $100m since it was founded in 2013.