Pesto, a San Francisco-based fintech company, has raised $11 million in funding from investors including Activant Capital and Plural. Pesto aims to offer affordable alternatives to underbanked Americans by providing a credit card, called Pesto Mastercard®, that allows customers to use their valuables as collateral to secure credit without selling them. The card helps individuals build or rebuild their credit scores over time, offering lower interest rates compared to pawn and payday loans.
Pesto’s founder and CEO, James Savoldelli, stated that their product offers interest rates significantly lower than existing alternatives, making it a paradigm shift in the credit card market. The company aims to democratize credit by providing a straightforward way for Americans to access liquidity and build credit using their assets.
In the United States, over 6 million underbanked individuals rely on high-interest-rate loans, with the pawn shop market generating substantial interest revenue. Pesto was founded in 2020 to address this issue and provide a more affordable solution for credit-building.
With the funding secured, Pesto plans to expand its customer base across the United States, initially focusing on Atlanta and Los Angeles. The company aims to make lending more accessible and affordable, ultimately helping individuals achieve greater financial freedom.
Pesto’s investors include Activant Capital, Plural, Sozo Ventures, Commerce Ventures, NJF Capital, Soma Capital, NOMO Ventures, Commerce Ventures, Human Capital, OVO Fund, OEL Ventures, Core Innovation Capital, Great Oaks VC, and Y Combinator. The funding will be used to support Pesto’s expansion plans and further develop its products.
Pesto provides a user-friendly and secure platform for customers to apply and submit their assets for approval. More information can be found on Pesto’s website at www.getpesto.com. The company is committed to helping individuals leverage their assets to obtain credit and achieve a more financially secure future.