TomoCredit

TomoCredit offers a zero-APR Mastercard credit card with a credit limit of up to USD 10,000 to help first-time borrowers, including millennials, Gen Z, and immigrants, to build a credit history. The platform's auto-pay feature allows users to make consistent payments every seven days to improve their credit score in addition to 1% cashback on all transactions. As it does not charge fees or interest from users, it is monetized solely through interchange fees.

In addition, the company offers a cash flow-based credit scoring tool called TomoScore for businesses. This allows lenders a way to evaluate borrowers who have no credit history.

Key customers and partnerships

The company claims to have increased its revenue by 10x in FY2021 and serves ~40 million customers as of July 2022. It issues the card through Community Federal Savings Bank and partners with Finicity, an open banking platform owned by Mastercard, to underwrite credit risk.

Funding and financials

In July 2022, TomoCredit raised USD 122 million in an oversubscribed Series B funding consisting of equity and debt, with participation from strategic investors such as Next Level Fund (Morgan Stanley) and MasterCard, and fintech investors such as GoldHouse and Asian Hustle Network. The funds are expected to be geared toward new hires and expanding its credit product offerings including auto loans and mortgages.