Payitoff Raises $ 8.5 Million in Seed Funding to Support Financial Services Industry to Resume Student Loan Payments | Business
NEW YORK – (BUSINESS WIRE) – November 10, 2021–
Refund, the company that is building an infrastructure to automate and optimize all aspects of debt management – starting with student loans – today announced that the company has raised an 8.5 million funding round. dollars, led by Lightspeed Venture Partners, with the participation of Sound companies, Capital struck and Social leverage, as well as a number of angel investors. This new capital will help the company meet growing demand from financial service providers as they prepare for the resumption of student loan repayments on February 1, 2022.
âWith the end of forbearance and the resumption of payments from 43 million borrowers, we are on the verge of experiencing a ‘student debt tsunami’ that will impact our economy and financial markets. in a way never seen before, âsaid Justin Overdorff, partner at Lightspeed Venture Partners. âPayitoff offers financial services an innovative solution that takes into account the financial health of their client, the borrower.
With Payitoff’s smart reimbursement channels, financial service providers can seamlessly extract detailed and reliable debt data that enables them to dramatically improve outcomes for their clients. By aligning incentives across the industry, the company is able to unlock tremendous value for every participant in the chain.
âWe are thrilled to have the opportunity to invest in a company that is tackling a critical issue at an unprecedented time for our economy,â said Ashton Kutcher, Co-Founder and Partner of Sound Ventures. âToday more than ever, financial services companies need to be able to deliver reliable debt solutions that deliver better financial results for their clients, and Payitoff’s technology is uniquely suited for that. “
Payitoff’s API and low-code solutions take only a few minutes to deploy and allow partners to integrate student loan repayment immediately. Partners using the Payitoff system save the average borrower $ 2,800 per year, money that can be used for things like emergency funds, a down payment on a house, and retirement. Additionally, Payitoff is the first and only vendor to automate federal loan assistance programs fully electronically, through their API. This translates to approvals for key programs, such as income-based reimbursement, in 10 days on average compared to the industry standard of 6 weeks.
In addition to integrating dozens of other fintechs and institutions before the resumption of student loan repayments on February 1, 2022, Payitoff will use this new capital to develop its impact-driven team. The company is actively recruiting for positions in engineering, sales, customer success and operations. Going forward, Payitoff sees an opportunity to expand its product line to introduce similar and impactful results to other debt verticals and financial products.
Payitoff is building an infrastructure to automate and optimize all aspects of debt management, starting with student loans. The company partners with fintechs, workplace suppliers and financial institutions to provide them with technology solutions that produce better financial results for their clients, the borrowers. Payitoff was founded by Bobby Matson in 2017 and the company is headquartered in New York City, with an early remote team scattered across the country. To date, Payitoff has raised a total of $ 11 million in funding from Lachy Groom, Lightspeed Venture Partners, Social Leverage, Sound Ventures and Struck Capital, as well as angel investors including: Ayo Omojola, Jim Esposito, Rohini Pandhi, Russ Fradin, Ryan Nece and Todd Jackson. Follow @Payitoff on Twitter and Linkedin, and find out more about www.payitoff.io.
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For press inquiries, please email: Kristen Alsterklint, press @ payitoff.io
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES DATA MANAGEMENT TECHNOLOGY OTHER SOFTWARE TECHNOLOGIES FINANCE BANKING
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PUB: 11/10/2021 9:00 a.m. / DISC: 11/10/2021 9:02 a.m.
Copyright Business Wire 2021.