Esusu, a financial technology company specializing in rent reporting and data solutions for credit building, is one of the first black-owned startups to reach “unicorn” status.
A $130 million Series B funding round, led by SoftBank Vision Fund 2, brought the company to a new valuation of $1 billion. Jones Feliciano Family Office, Lauder Zinterhofer Family Office, Motley Fool Ventures, Schusterman Foundation, SoftBank Group’s SB Opportunity Fund, Related Companies, and Wilshire Lane Capital were also part of the funding round.
“We founded Esusu with the vision of using data to bridge the racial wealth gap and create more equitable financial opportunities for low-to-moderate-income households in this country,” Esusu co-founders Abbey Wemimo and Samir Goel said in a release. “By establishing and improving credit scores, we are strengthening financial identities while empowering individuals, families, and communities to meet their long-term financial goals.”
According to the release, Esusu’s Series A round, led by Motley Fool Ventures Managing Partner Ollen Douglass, positioned the company to accelerate market adoption and become a leading platform in its sector. The company grew almost 600 percent year-over-year in 2021. The Series B capital will be used to triple Esusu’s employees, fuel growth through product innovation, and build a comprehensive financial health platform.
Esusu helps Americans establish and build their credit history by reporting on-time rent payments to the three major credit bureaus. Over 109 million Americans spend an average $1,100 a month in rent, and 90 percent of those renters do not get credit for paying on time.
“By using alternative data to enhance credit scores, Esusu can open up financial opportunities for millions of underserved American households,” SoftBank Investment Advisers Managing Partner Vikas Parekh said. “We believe that Esusu has built a leading rental reporting and financial platform through partnerships with renters, property owners, and lenders that can become the central data hub for consumer financial health. We are thrilled to partner with Samir Goel, Abbey Wemimo and the team to support their vision to generate equitable financial access for everyone.”
Esusu works with 35 percent of the largest landlords on the National Multifamily Housing Council list. It also has entered a joint initiative with Freddie Mac Multifamily, in which Freddie Mac will provide closing cost credit to its borrowers using Esusu.