US-based consumer fintech start-up Bright Money secures $62 million in funding, combining debt and equity, for its AI-driven bank aimed at debt-laden consumers.

Facts

• Bright Money raises $62 million in funding, comprising $50 million in debt funding from Encina Lender Finance and $12 million in equity funding led by Alpha Wave, Hummingbird, and PeakXV.
• Founded in 2019, Bright Money is headquartered in San Francisco, California, with an office in Bengaluru, India.
• Bright Money specializes in AI-powered banking services designed for consumers dealing with significant debt.
• Its offerings include an AI-powered mobile app, customized credit products, credit score building, automated debt payments, financial planning tools, budgeting tools, and refinancing loans.
• With the new funding, Bright Money plans to expand its team across various areas such as product development, technology, analytics, compliance, and customer service.
• Co-founder and co-CEO Avi Patchava highlights a remarkable “6x growth” in the past year, reaching “hundreds of thousands” of users. However, the start-up faced layoffs of nearly 100 employees in July of the previous year.