India's Zolve Raises $251M to Expand Global Neo Banking Services

Raghu Gangappa, Zolve Founder & CEO

Zolve raised $251 million in its latest equity and debt financing round, the neo bank said on Tuesday (Mar 11), led by Indian private equity firm Creaegis, an existing investor, with participation from names like HSBC and SBI Investment.

The latest funding, by far the largest in the Houston, Texas-based company's history, has given it a valuation of around $800 million, a source close to the deal told Reuters.

The funding for cross-border company Zolve comes at a time when venture funding in the United States has remained subpar, while activity in India has seen a significant bump.

Creaegis, a company headquartered in the southern Indian city of Bengaluru, also led Zolve's previous financing in 2024.

Zolve seeks to end credit woes for new entrants to the U.S. who are considered high-risk borrowers, by helping them access financial services from their first day in the country.

"When talented people move countries, their financial history is erased overnight. We're changing that by giving global citizens access to credit and banking from day one," said Zolve's founder and CEO Raghu Gangappa.

The funding round will help the company scale its business, Zolve said.

The neo bank, which was launched in 2021 and has over 750,000 customers, plans to expand into Canada, the U.K. and Australia, and incorporate sectors like auto, personal and education loans into its business portfolio.

The funding round also featured some other existing investors like Accel, Lightspeed Venture Partners and Sparta Group.

Source: Reuters