Bright Money, a fintech company helping users get out of debt using AI and credit products, has closed a US$62 million financing round.
The capital comprises a US$50 million debt funding from Encina Lender Finance, which provides lending solutions to consumer and commercial speciality finance companies across the US and Canada.
The remaining US$12 million equity was led by Alpha Wave Global, Hummingbird Ventures, and PeakXV Partners (earlier known as Sequoia Capital India & SEA).
Bright Money was founded in 2019 by a team from McKinsey’s Banking Practice (Petko Plachkov and Avi Patchava) and InMobi Data Scientists (Avi Patchava, Varun Modi, Avinash Ramakath, Jay Merwade, and Amit Bendale).
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The fintech startup provides an AI-powered app that combines the technology needed to manage and get rid of debt. Bright Money products include credit score building, automated debt paydown plans, financial planning, budget planning tools, and refinance loans. It works with credit cards, student loans, and car loans.
The company aims to reshape how global retail banks operate, driven by big data and AI. Bright Money focuses on the liabilities of a consumer: personal lending and credit cards. It currently has a team of over 180 employees.
According to a report, the total US consumer debt has recently crossed US$17 trillion for the first time on record. Bright Money’s products target the deletion of credit card debt, building credit scores, and increasing savings. The platform has now expanded into refinance lending and credit cards.
The company has set up a team in India across all functions, while a smaller team operates out of the US.
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