Credit underwriting solutions provider Zest AI has secured a $200 million growth investment from existing backer Insight Partners as it looks to “take aim at high impact M&A opportunities”.
Zest AI secures $200 million growth investment
The deal marks Insight Partners’ third and largest investment in Zest AI to date. The company made an initial $15 million investment in 2020 before co-leading a $50 million growth funding round with CMFG Ventures two years later.
Zest AI says it has doubled its customer count every year since first receiving backing from Insight Partners in 2020, achieving an average compounding annual growth rate of “over 50%”.
Founded in 2009, Zest AI provides underwriting technology which leverages AI to enhance the accuracy and transparency of credit scoring for banks and credit unions in the US.
With its fresh growth investment in hand, the company plans to “accelerate our product roadmap and identify strategic M&A opportunities”, according to founder and CEO Mike de Vere.
The company says its M&A strategy and product roadmap will focus on “loan underwriting solutions, fraud protection, marketing and data intelligence capabilities”.
Zest AI has already launched several new products over this year, including LuLu, a lending intelligence tool, in February, and Zest Protect, a fraud detection solution, in August.
{Categories} _Category: Implications{/Categories}
{URL}https://www.fintechfutures.com/2024/12/zest-ai-lands-200m-growth-investment-eyes-high-impact-ma-opportunities/{/URL}
{Author}Tyler Pathe{/Author}
{Image}https://www.fintechfutures.com/files/2024/12/Zest-AI-FinTech-News.png{/Image}
{Keywords}Artificial Intelligence/AI,Business-to-Business/B2B,Consumer/Personal Finance,Data & Analytics,Financial Inclusion,Investment & Funding,Lending,ai-homepage-featured-4,homepage-featured-4,homepage-featured-north-america-4,Insight Partners,Zest AI{/Keywords}
{Source}Implications{/Source}
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