The U.S-based blockchain firm, Stellar announced that it has completed a $7 million funding round from strategic investors and hedge funds. The company is valued at around $3 billion following the fundraising, making it one of the most valuable firms in its industry.
Fintech is the term used to describe a new financial system that uses technology and digital tools. Fintech companies are disrupting traditional banking by offering products such as mobile-based money transfers, online bill payment, peer-to-peer lending, and more. The “what is fintech” is a question that is asked often in relation to Stellar’s $7 million funding round.
Stellar and Selfbook, two US fintechs, have secured $7 million and $15 million, respectively, for their development plans.
Stellar, a credit-building and bill-paying software, has announced that its $7 million seed round was oversubscribed. Capital led the round, which was co-led by Trust Ventures, with participation from Accomplice Ventures, Fiat Ventures, Permit Ventures, Vera Equity, Angel Investors, Kindergarten Ventures, Fiat Ventures, and Accomplice Ventures, according to the release.
Stellar will provide underserved communities access to financial tools.
The funds will allow Stellar to continue its mission of helping marginalized areas with financial tools and credit development opportunities, according to the company. The startup’s primary goal is to “overhaul the American credit system,” according to its website.
Lamine Zarrad, the CEO of Stellar, estimated that around 112 million Americans either have no credit or have a low credit rating. He claims that the various items they spend money on, such as electricity and rent, as well as other subscriptions, are not reflected in their credit score. “These are folks who pay their expenses and get no compensation,” Zarrad said. The goal is to offer a way for these invoices to be recorded, therefore improving their credit score.
Users of the Stellar app will also be able to get cash back and prizes that may be applied to their associated bills. In mid-March, the fintech intends to start its public beta.
Selfbook’s market capitalization has risen to $300 million.
Selfbook, a New York-based fintech firm, has announced that the $15 million in Series A financing would be utilized for product growth and staff additions. Tiger Global led the investment round, which included participation from additional investors such as JAWS. Selfblock has grown from 5 to 70 staff since its start in April 2021, with around 100 hotels onboarded.
Selfboook has now raised a total of $40 million, bringing the company’s worth to $300 million. Selfbook intends to utilize the new funds to establish integrated fintech prospects, in addition to expanding its personnel.
