Kikoff Raises $30M to Blend Credit Building and Financial Literacy

Kikoff Secures $30 Million in Series B Funding to Expand Credit-Building Platform

Kikoff, a financial technology company focused on assisting individuals in establishing and improving their credit, has announced the successful completion of a $30 million Series B funding round.

Previous Funding Rounds

This new investment supplements the $12.5 million previously secured by the startup through earlier seed and Series A rounds. Both of these prior funding stages were spearheaded by Lightspeed Venture Partners.

Investors in the Series B Round

Portage Ventures took the lead on Kikoff’s Series B round, with significant participation from Lightspeed, GGV, Coatue, and Core Innovation Capital. Notable previous investors include NBA star Steph Curry, Melissa Smith, CEO of Wex, and Teresa Ressel, formerly the CFO of the U.S. Department of the Treasury.

Company Origins and Mission

Founded in late 2019 in San Francisco by CEO Cynthia Chen and CTO Christophe Chong, Kikoff was created to address the challenges faced by those lacking a credit history. The founders, having grown up in “low to moderate income” families, aim to extend financial access to individuals from similar backgrounds.

Chen, who came to the U.S. from Beijing on a scholarship, observed her parents’ reliance on borrowing from family and friends for purchases, inspiring the company’s mission.

Customer Growth and Product Offering

Kikoff has amassed “hundreds of thousands” of customers since exiting its beta phase six months ago, though specific revenue figures remain undisclosed.

The company’s flagship product, the Kikoff Credit Account, represents the initial offering in a planned suite of tools designed to enhance consumers’ overall financial well-being.

Addressing Financial Inclusion

“Many Americans, particularly those burdened with student loan debt and without affluent family support, require a more effective method for building credit than current market options provide,” stated Chen. The platform primarily serves millennials and Gen Z, demographics most actively seeking credit-building solutions.

A Unique Approach to Credit Building

Kikoff distinguishes itself by combining credit building with financial literacy. Instead of a conventional credit or debit card, the line of credit is restricted to purchases within Kikoff’s curated online store.

This store features resources like e-books on budgeting and investing, as well as courses covering personal finance, e-commerce, and even programming skills like Python.

“Purchases from our store are intended to improve financial habits, facilitate smarter investments, or enable small business ventures,” explained Chen to TechCrunch.

Fee-Free Financing

Kikoff operates without charging interest or fees on its credit line. Revenue is generated through the difference between wholesale and retail prices of items sold in the store.

How the Kikoff Credit Account Works

Users begin by applying for a $500 revolving line of credit, exclusively usable at the Kikoff online store. The company asserts that customers can become eligible for improved credit terms, including better interest rates on credit cards and mortgages, within approximately 45 days.

Kikoff prioritizes responsible credit building, limiting spending within its store to discourage overspending.

Investor Perspective

Lightspeed Partner Ansaf Kareem expressed empathy for the challenges faced by Chen and Chong in establishing credit, particularly as immigrants and first-generation Americans.

“A credit score is fundamental to financial opportunity, yet many Americans struggle to build one,” Kareem noted. “Kikoff offers a valuable, fee-free solution for initiating and improving credit, and their journey is just beginning.”

Experienced Leadership Team

Kikoff’s leadership team brings substantial fintech experience to the table. Chen previously served as Chief Risk Officer at Figure and held senior positions at Capital One and OnDeck. Chong led growth teams at Lime, Facebook, and Square. Andrew Brix, Head of Product, was an early employee at Credit Karma and also worked at E-Trade. Patrick Glover, Head of Marketing, has experience at Plaid and Square, while Vinni Bala, Head of Operations, is a former CMO and Chief Credit Officer at Deserve.

Competitive Landscape

Other companies pursuing similar goals and attracting venture funding include Tomo Credit and Welcome Tech.