Stellar announced the closure of an oversubscribed $7 million funding round Monday.
The development comes as the credit building and bill pay app follows through on its mission to provide access to credit-building and financial tools to underserved communities.
In a statement, the founder and CEO Lamine Zarrad said this development will help his team in providing credit access to the over 130 million Americans that don’t have it.
“That’s in large part because traditionally, credit scores are made up of a person’s payment history on loans and credit cards. This means bills for everyday purchases like rent, utilities and Netflix go unreported. These are people who pay their bills and get zero rewards for it. We want Stellar to let their bills pay them back–something they’ve deserved for a very long time.“
Unlike competitors that use secured loans and high-interest cards to build credit, Stellar said it lets users build credit through everyday purchases that it reports to credit bureaus.
Additionally, the app allows for rewards and cashback connected directly to bills.
“As an immigrant and a former enlisted Marine, I know how difficult it is to build and maintain financial stability. With Stellar, we wanted to distill years of learnings into a simple app that transforms ordinary household bills into value-generating assets. I am absolutely thrilled to embark on this journey with an amazing crew and top-notch investors!”
