Need some extra cash in between paychecks? Chicago startup Klover will give you an interest-free loan in exchange for data on your spending history.
Klover, a startup founded in 2019 by CEO Brian Mandelbaum, offers quick access to cash without charging users interest. Instead, the startup asks for access to your bank transactions and serves you ads from brands based on how you spend. Klover says it doesn't share or sell personal or identifiable information.
The startup has grown fast in just two short years, amassing more than 1.5 million users. On Thursday, Klover announced it raised $60 million in a Series A round led by Mercato Partners Traverse Fund. Other backers include Lightbank, Starting Line and Motivate Ventures, all out of Chicago, as well as Core Innovation Capital.
Klover is designed for those in need a little extra cash before their paycheck hits, like after experiencing an unexpected car repair bill or a trip to the hospital. Rather than getting hit with an overdraft fee or using a high-interest credit card, Klover will give you a loan in exchange for your data. It works with brands like Wayfair, DoorDash and GoodRx, serving users ads based on their financial habits.
The startup says it has grown its revenue 1,600% in the last year, and expects to double its team of 30 to 60 by the end of 2021.
Klover is among several high-growth fintech startups in Chicago that have made headlines this year. M1 Finance, a no-fee investing app, raised $150 million at a $1.5 billion valuation earlier this year. Amount, a startup building tech-powered lending products for banks, also hit unicorn status after raising $100 million. And tastytrade, an online trading firm and financial media network, was acquired by IG Group for $1 billion in January.
