Fintech startup Esusu works with landlords to ensure that rent payments are reported to financial institutions.
Nearly 50 million Americans lack a credit history, cutting them off from economic opportunity. Unlike homeowners making mortgage payments, renters every year make some $1.4 trillion in payments each year that don’t get tracked.
Esusu’s service is available in more than 5 million rental units encompassing $100 billion in annual rent payments, and has helped renters unlock some $30 billion in mortgages.
“We are empowering renters to build credit, unlock capital, and participate fully in the economy,” said Esusu cofounders Wemimo Abbey and Samir Goel. “With our partners behind us, we are scaling solutions that serve as the bedrock of the American Dream.”
Empowering people
The $50 million Series C round was led by Westbound Equity Partners, an early stage venture firm focused on tech-enabled economic growth and inclusion. The deal pushed New York-based Esusu’s valuation to $1.2 billion.
The Geraldine R. Dodge Foundation, Blue Meridian Partners and family offices also participated. Earlier investors include Serena Ventures and SoftBank Opportunity Fund.
“Esusu is fundamentally reshaping how the financial system can work for everyone,” said Westbound Equity’s Sean Mendy. “When people are given the tools to rise, they do.”
Abbey was inspired to start Esusu after seeing his Nigerian-born mother borrow from a payday lender after being turned away from banks due to a lack of credit, he told Troy Duffie and Lenore Champagne Bearne last fall on The Market Makers podcast, part of the ImpactAlpha podcast network.
