LONDON: It was only about three months ago when ZestFinance, the online lending startup founded by ex-Google CIO Douglas Merrill, launched a new loan service called Basix.
Basix is a lending service aimed at the “near prime” market, or people with credit scores just below levels that would qualify them for regular bank loans. Merrill says millions of “near prime” Americans have been underserved by banks, especially following the 2008 financial crisis, and Basix makes it easier for them to find affordable loans.
In the three months since its launch, Basix seems to have grown pretty fast — so much so that it just sealed a $150 million debt financing deal with Fortress Investment Group, one of the world’s largest investment firms with roughly $70 billion in assets.
The new funding will be used for the consumer loans that Basix provides.
It’s a public validation that Fortress believes in our team and approach,” Merrill told Business Insider. “It underscores their belief in our technology and that our technology will be a key element to transform this space going forward.”
