Chicago lending company Avant has acquired a San Francisco mobile banking startup as it grows its digital banking business.
Avant announced Wednesday that it has purchased Zero Financial and Level, the company's neobank app. The company would not disclose the terms of the deal but said that Avant paid for Zero Financial with a mix of cash and stock.
Zero Financial’s platform allows users to manage bank accounts from their phone, such as checking accounts and credit lines. By acquiring Zero Financial, Avant says it is able to offer more digital banking capabilities and reach more customers.
“Expanding our product portfolio allows us to serve even more people, offering every consumer access to innovative and rewards-based products to simplify and improve their financial journey,” said Avant CEO James Paris in a statement.
Founded in 2016 by Bryce Galen and Joel Washington, Zero Financial has raised $147 million in debt and equity financing to date, according to Crunchbase. All of Zero Financial’s employees are joining the Avant team, which now has about 460 employees.
Avant, founded in 2012, makes a platform that allows users to quickly apply for and receive loans, especially those with no credit or low credit scores. To help support its lending business, Avant launched spinoff startup Amount in 2018 as a new solution for banks who wanted to significantly enhance their digital capabilities.
Now Amount is growing as an independent business, recently raising an $81 million Series C round led by Goldman Sachs Growth.
Across its brands, Avant says it has more than 1.5 million customers and has connected them to 400,000 credit cards and $7.5 billion in loans. According to Crunchbase, Avant has raised $1.6 billion in debt and venture funding.
