Perch, a Los Angeles, CA-based startup that provides an app for people to build credit through nontraditional payments, closed its $2.5m seed funding round.
Backers included Marcy Venture Partners, Citi, Softbank Opportunity Fund, Concrete Rose and Village Capital.
The company intends to use the funds to continue to expand its reach.
Led by Michael Broughton, co-founder and CEO, Perch provides an app that allows users to build credit using their recurring expenses they are already paying for, such as Netflix, Hulu, Spotify or rent. By using a person’s existing payments and subscriptions to demonstrate responsibility to U.S. credit bureau partners, Perch can establish a person’s credit history. With the app, users can see an improvement in their credit score in less than 30 days compared to the typical 6-8 months it takes, on average, to build credit using a credit card or loan.
The company is currently onboarding users into the app in weekly cohorts.