Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe
Features
Series
Themes
Community
Data
Subscribe Log In
More

Fig Tech clinches $23 million to expand nonprofits’ lending capacity



ImpactAlpha, August 18 – Fintech startup Fig launched in 2015 to help nonprofit organizations combat predatory payday loans for low-income Americans, and has scaled its impact by helping nonprofits expand their own financial services. A $23 million round of debt and equity funding, led by alternative credit provider Upper90, positions the B Corp. and community development financial institution to expand services to more nonprofit partners.

“It’s a stepping stone to working with community banks,” Fig’s Jeff Zhou told ImpactAlpha.

Techstars Ventures and PurposeBuilt Ventures also backed the round.

Responsible lending

Houston-based Fig wants to disrupt structural issues in the financial services sector that disproportionately impact low-income households.

“Payday lenders and many more traditional financial institutions’ bottom lines are dependent on day-to-day nickel-and-diming, which makes everything much more expensive for low-income households,” said Zhou. 

The company’s original product provides $300 to $750 in flexible emergency credit (see,Fig Tech gets backing for lending platform aimed at community organizations”).

Its other key offering is credit underwriting, analytics and management software that enables nonprofits like partner United Way of Greater Houston to provide financial services alongside other basic services and relief. 

Fig supports 40,000 organizations in six states. Zhou said Fig has seen increased interest from nonprofits in shifting to online products and services amid the pandemic.

“Nonprofits offer almost all of their services in-person,” he explained. “That’s less efficient than going digital, and it’s also a health risk right now.”

You might also like...