Zebit, Inc., a San Diego, CA-based automated payment system that provides zero-interest credit to Americans consumers underserved by traditional financial services, raised $10m in Series A venture capital funding.
The round was led by Crosslink Capital with participation from Wildcat Venture Partners, Leapfrog Ventures and Correlation Ventures. In conjunction with the funding, Jim Feuille, general partner, Crosslink Capital; Bryan Stolle, general partner, Wildcat Venture Partners and Mohr Davidow Ventures; and Pete Sinclair, general partner, Leapfrog Ventures all join Zebit’s Board of Directors.
The company intends to use the funds for working capital for receivables, operations, and expansion of its payment and ecommerce platforms.
Led by Michael Thiemann, co-founder and chief executive officer, and Marc Schneider, co-founder and chief operating officer, Zebit has developed a payment system that provides credit at zero percent interest, without fees, penalties, or credit checks. The credit can be used to make purchases from the Zebit Market or directly from retailers that accept Zebit as a checkout option.
Within the Zebit Market, customers can finance thousands of quality, brand-name products over time, without paying interest.
Currently, the market contains products by Panasonic, Samsung, Canon, Garmin, HP, LG Electronics, KitchenAid, Cuisinart, Hoover, Coleman, and others, which are all sold at competitive retail prices, never above MSRP.
The platform is now available to participating employers with workforces ranging from 1,000 to over 100,000 employees, with a $100 million electronics retailer and has commitments from employers representing 250,000 employees to offer the benefit in 2016.