Embedded debt repayment startup Method raises $16M
Method, an Austin-based embedded debt repayment startup, has raised $16 million in Series A funding led by Andreessen Horowitz, Ryan writes.
Why it matters: Embedded finance APIs are becoming more sophisticated and enabling fintech developers to offer new applications to end users.
How it works: Method has built tools for developers to embed loan repayment, data, balance transfers and automation into their apps.
- It gives developers access to a wide range of end-customer liabilities, including student loans, credit cards, auto loans, mortgages and utility bills, all through a single API.
- The firm manages identity verification by tapping data from credit bureaus and wireless carriers to connect consumers to related accounts and liabilities without requiring them to enter user credentials.
- It also built an automated payment system enabling fintech developers to streamline debt repayment in their apps.
Between the lines: Method founders Jose Bethancourt and Marco del Carmen got their start building GradJoy, a consumer-facing app to help people pay off student loans.
- Along the way, they realized there weren’t many embedded finance tools for adding debt repayment to fintech apps.
Of note: Y Combinator, Abstract Ventures, Ardent Venture Partners, LiveOak Venture Partners and SV Angel are also investors.
- Altogether, the company has raised $18.5 million in venture funding since launching in 2021.