D.C. fintech company Wellthi, previously known as Invest Sou Sou, has raised $2.1 million in an oversubscribed seed round with plans to take on strategic capital for the next quarter, up to $3 million.
The seed round was led by Milwaukee financial services giant Northwestern Mutual, and D.C.’s Zeal Capital Partners matched the investment.
The funds are going to be used to service existing contracts with large regional banks that co-founder and CEO Fonta Gilliam declined to disclose, but she said they would give the financial app access to 5 million customers. She also intends to double her current employee count of 15 with additions to the engineering and sales teams.
“Unlike a lot of other fintech companies, I didn't have a lot of funding up front, so we had to presell our technology, use the revenue to build it. So this round is servicing growth,” Gilliam said. “One thing I’ve learned in this process is there's much more than money you can get. Money’s everywhere. It’s really about people that will empower, support you and understand your journey.”
Wellthi has raised $3.6 million to date. Gilliam said the support of Zeal, which is led by founder and Managing Partner Nasir Qadree, has been integral to not only finding business opportunities but helping her navigate being Black in tech.
“Having a Black VC on the [capitalization] table as a Black woman founder, someone I feel comfortable with, that I can talk to, it's been invaluable,” Gilliam said. “I won’t say that I don’t have other investors I can do that with, but in fintech, where it’s so rare to see people like me, it's been powerful to have that kind of support from someone that gets where I’m coming from.”
The social finance software platform integrates with users’ banking apps. It allows users to set financial goals with friends and family members but also find groups of people with similar interests working toward the same financial goals. These groups are run by social influencers and financial experts vetted and curated for the app. Users can set group goals with friends to help them meet their specific savings goals and while that money is tracked together, it remains in separate, federally insured accounts until it is ready for withdrawal. Friends can invite other friends and customers, and it uses pressures common on social media to hold savers accountable for their financial goals.
Wellthi rebranded from Invest Sou Sou because the former name was similar to a chain-mail solicitation pyramid scheme that had taken hold in Black communities during the peak of the pandemic in 2020. The scams would go by the name “sou-sou,” “blessing loom” or “gifting circle.” It was starting to have an impact on the brand Gilliam had spent years working with banks to build.
“It was awful, and it got to the point where as a team, I was going into client meetings and people were asking me if I was a part of this and, if so, they didn’t want to do business with us,” Gilliam said. “We came to Wellthi, which is a combination of wellness and wealth, which is really what we’re trying to promote to people.”
Looking back now, it’s something Gilliam sees as a blessing in disguise. She saves every no she receives. If it’s valid, she changes her pitch deck. Gilliam is the type to see challenges as an opportunity and setbacks as space for growth.
“You’re going to get a lot of noes. And you're going to be criticized and disregarded. I think that is across the board whether you're Black or a woman or what have you, it's hard to raise. I think it’s important to keep going,” Gilliam said. “I think you can't stop. I could have stopped a lot. I get a lot of offers. Headhunters recruit me for different things. But that tenacity, if you believe in it and know it will work, you’ll figure out how to make it work. So just keep going, don’t listen to the noes.”
