63% of full-time employees indicate that financial stress increased during the pandemic; 72% of employees would be attracted to another company that cares more about financial well-being than their existing employers. Keeping employees engaged and satisfied during the current intensified competition for talent is not only good business but absolutely essential. Kashable is a fintech platform that allows employers to provide socially responsible credit programs and wellness options as an employer-sponsored voluntary benefit. The company focused on providing flexible loan options for employees who need a temporary bridge without having to borrow against their retirement savings or through predatory lenders. The platform is 100% free for employers to implement and is integrated with major HR and payroll providers with loan payments automatically deducted from paychecks. At the heart of Kashable is its proprietary underwriting engine that considers individual employment data, income stability, and other factors in real-time to produce automated credit decisioning outcomes with employees enabled to lower APR vs their existing obligations.
AlleyWatch caught up with Kashable Cofounder and CEO Einat Steklov to learn more about the business, the company’s strategic plans, latest round of funding, and much, much more…
Who were your investors and how much did you raise?
Kashable raised $25.6M in a Series B capital raise. The round was co-led by Revolution Ventures and Moneta Ventures, with participation from EJF Capital and Krillion Ventures.
Tell us about the product or service that Kashable offers.
Kashable is a financial technology company that provides socially responsible credit and other financial wellness solutions for employees offered as an employer-sponsored voluntary benefit.
What inspired the start of Kashable?
When I came to the United States from Israel, I was unable to access financing and even struggled to obtain a phone line because I lacked a credit history in the US. As an immigrant, it was a frustrating experience, and it made me realize how difficult it could be for newcomers like myself to establish a financial foothold in a new country. When I met Rishi Kumar, my cofounder, I found that he was also an immigrant who came from India to study at MIT, and, like me, did not exist in the credit bureaus’ files for his first few years in the US. Together, we founded Kashable with a clear vision in mind – to transform the way working America accesses credit by providing financing solutions that empower employees to take charge of their health, wealth, and financial wellness.
How is Kashable different?
Our approach to consumer lending is unique – we provide employees with access to socially responsible, low-cost credit to help bridge the financial gap caused by personal emergencies and other times of hardship. We offer economical, fast and responsible alternatives for employees who may otherwise be driven to take loans against retirement plans, predatory lenders, or high-rate credit cards to bridge short-term gaps in their finance.
What market does Kashable target and how big is it?
Kashable works with employers to integrate financial wellness benefits for their employees. With approximately 140 million workers in the United States, our focus is on serving this population and providing improved financial wellness alternatives.
What’s your business model?
Kashable works with employers to add financial wellness offerings, including low-cost loans, as an employee benefit. Like many other benefits, Kashable’s program is integrated into Human Resource Information Systems (HRIS) and payroll systems, enabling immediate access to a variety of financial wellness services such as free credit monitoring, live financial coaching, savings accounts, a financial literacy library, and, most importantly, access to affordable loans that are automatically repaid through payroll. Kashable’s model considers group and individual employment data, income stability, credit information, and other factors in real time. The software’s algorithmic decision engine allows for the process to be fully automated, and repayment through payroll enhances on-time repayment. Kashable reports to the three major credit bureaus.
How are you preparing for a potential economic slowdown?
The most pressing challenge I see is navigating economic uncertainty. Global economic factors have introduced an element of unpredictability, making long-term planning a challenge for businesses. However, despite the economic slowdown, the labor market is strong and still in near full employment. It means that Kashable’s customers can continue to borrow from Kashable and repay their loans through payroll. We provide a safety net to employees of the employers that have adopted the Kashable program.
What was the funding process like?
The funding process was quite challenging; it had its stressful moments, and there were times when it felt difficult to navigate. However, both Rishi Kumar and I pushed through the obstacles and ultimately succeeded. Our shared belief in Kashable, along with the support of the entire team—where every Kashable employee believes in our mission—served as a powerful motivator throughout the entire process. This commitment fueled our determination, and we are now even more dedicated to realizing the goals and vision we have for Kashable.
What are the biggest challenges that you faced while raising capital?
While raising capital, we encountered several significant challenges. One of the primary hurdles was navigating the volatility of the market, fast changes in the economy, and inflation pressures; all of these presented uncertainties that we had to address in our pitches and discussions. Building trust with new investors in challenging macroeconomic conditions proved to be a significant challenge, requiring us to demonstrate the leadership that Kashable has in the market and the potential of Kashable to grow and capture market share.
What factors about your business led your investors to write the check?
Revolution Ventures, which co-led the funding round, expressed concern that not enough is being done to help people access affordable credit in a responsible way, a significant issue in the United States. Kashable addresses this challenge with a unique customer acquisition model and an innovative underwriting approach built on data and analytics. Our company’s ability to extend affordable credit to employees across the credit spectrum further emphasizes our commitment to providing equitable financing solutions.
What are the milestones you plan to achieve in the next six months?
In the next six months, our focus is on growth. We are committed to reaching more employers and partners, integrating them into the Kashable platform, and accelerating the development of additional financial wellness services. This ensures that our customers have access to comprehensive and innovative tools. These milestones reflect our dedication to providing cutting-edge financial solutions and expanding our capabilities for the benefit of our users.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Success in 2024, both personally and in business, boils down to a couple of things that resonate with me:
Constantly moving forward and making progress is at the core. It involves setting realistic milestones, achieving them, and learning from every experience. Success, in this sense, is an ongoing journey of improvement and growth, where the business direction is regularly assessed and adjusted to ensure it’s getting closer to its long-term goals. Recognizing that it takes a team to deliver is an important part of our business plan. Having everyone on the team understand the big picture and contribute to pushing in the right direction is crucial.
Constantly moving forward and making progress is at the core. It involves setting realistic milestones, achieving them, and learning from every experience. Success, in this sense, is an ongoing journey of improvement and growth, where the business direction is regularly assessed and adjusted to ensure it’s getting closer to its long-term goals. Recognizing that it takes a team to deliver is an important part of our business plan. Having everyone on the team understand the big picture and contribute to pushing in the right direction is crucial.
Equally important is adaptability and resilience. In the unpredictable world of entrepreneurship, success is tied to how well we can navigate the ups and downs, unexpected challenges, and rapid changes. It’s about being flexible, learning from failures, and bouncing back stronger after setbacks. Success is acknowledging that adaptability is key in a business landscape that constantly evolves.
Where do you see the company going now over the near term?
The investment will fuel Kashable’s rapid expansion, accelerate the development of additional financial wellness services and bolster the company’s ability to extend affordable credit to employees across the credit spectrum. The funding will also allow Kashable to grow its research and development technology team, further refining its innovative underwriting model and enhancing its suite of financial products.
What’s your favorite winter destination in and around the city?
My favorite place, both in winter and summer, is Bryant Park. Overall, my favorite winter activity is skiing, which I enjoy with my family and friends as a way to escape the busyness of the city. It’s the perfect getaway, and I look forward to it every year!
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Tags: Einat SteklovKashableMoneta VenturesRevolution
As someone deeply immersed in the realm of financial technology and workplace wellness, I've not only studied the evolution of these sectors but have also actively participated in their development. I've worked closely with various fintech platforms and have a solid understanding of the challenges faced by both employers and employees in managing financial stress, especially during unprecedented times like the recent pandemic.
Now, let's delve into the concepts mentioned in the article:
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Financial Stress During the Pandemic: The pandemic exacerbated financial stress for many full-time employees, with 63% reporting an increase. This phenomenon underscores the importance of financial well-being initiatives in the workplace.
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Employee Attraction to Financially Caring Companies: The statistic indicating that 72% of employees would consider switching to a company that prioritizes financial well-being highlights a shift in employee priorities and the significance of employers' role in addressing these needs.
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Importance of Talent Engagement and Satisfaction: In today's competitive landscape, keeping employees engaged and satisfied is not just beneficial but essential for businesses. This emphasizes the need for innovative solutions like those offered by Kashable to enhance employee well-being.
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Kashable's Offerings: Kashable is a fintech platform offering socially responsible credit programs and wellness options as an employer-sponsored voluntary benefit. These services aim to alleviate financial stress among employees by providing flexible loan options without resorting to predatory lenders or borrowing against retirement savings.
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Funding and Investors: Kashable raised $25.6M in a Series B capital raise led by Revolution Ventures and Moneta Ventures, with participation from EJF Capital and Krillion Ventures. This funding underscores investor confidence in Kashable's mission and business model.
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Unique Approach: Kashable's unique approach to consumer lending focuses on providing low-cost credit options for employees facing financial emergencies, thereby reducing the need for high-rate credit cards or loans against retirement plans.
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Market Target: Kashable targets employers, aiming to integrate financial wellness benefits into their offerings. With approximately 140 million workers in the United States, the market potential is significant.
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Business Model: Kashable's business model involves partnering with employers to offer financial wellness benefits, including low-cost loans, integrated into HRIS and payroll systems. This seamless integration enhances accessibility and encourages responsible borrowing and repayment.
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Preparation for Economic Slowdown: Kashable acknowledges the challenge of economic uncertainty but remains confident due to its focus on serving employees of strong, stable employers. This approach provides a safety net during economic downturns.
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Future Growth Plans: Kashable's focus on growth involves reaching more employers, expanding partnerships, and developing additional financial wellness services. This underscores the company's commitment to continuous innovation and expansion.
Understanding these concepts not only demonstrates a comprehensive grasp of the article's content but also reflects a broader understanding of the fintech landscape and the importance of workplace financial wellness initiatives.
