Last year, Black-owned fintech company MoCaFi announced updates to their platform to better ease financial burdens for Black and brown communities. Today, they share news of closing a $12 million Series A funding round to expand into larger capacities.
“In addition to offering high-quality, low-cost financial products and services that have helped many individuals and families across the nation, we are excited to launch a new strategy that allows municipalities to systematically address a significant market failure – the lack of access to banking products for large portions of the population,” said Wole Coaxum, Founder and CEO of MoCaFi, in a statement. “Communities of color are disproportionately impacted by this phenomenon. Our model reimagines how cities work with financial services to deliver banking and disbursement solutions to all their residents. Together we have the potential to play an important role in closing the racial wealth gap in the United States.”
A press release shares that the funding round was led by Tom and Wende Hutton — early investors in SoFi, Lemonade, and other successful fintech start-ups — and also includes investments from the Citi Impact Fund, Mastercard, 1Flourish Capital, Commerce Ventures, and several family offices.
Additional investors who also previously participated in the round include Radicle Impact, Portfolia America Rising Fund and the Partnership Fund for New York City.
MoCaFi — which is based in Harlem, NY and Newark, NJ – has built up a business model that’s dedicated to addressing the issues of economic mobility and lack of financial equity that plague Black and Hispanic communities across the U.S.
Through their latest expansion efforts — assisted by their current participation in the Mastercard Start Path program — has allowed MoCaFi to scale its mobile app to include both Demand Deposit Accounts as well as disbursement accounts for disaster-related and other payments, a press release shares.
Additionally, MoCaFi is also working closely with Equifax and TransUnion to help their customers obtain a deeper level of financial literacy and increase their credit file through payments processed on its platform.
MoCaFi’s impact is what Black and brown people have been waiting for over these last few years, especially as financial independence has become a recurring theme for many successful entrepreneurs who are giving back to these communities.
“MoCaFi has an opportunity to meaningfully impact the lives of millions of underserved Americans located in cities big and small and has addressed the critical challenge of scale through partnerships with municipalities,” investor Tom Hutton shares in a statement. “Through a unique model, the company provides financial services to underserved consumers. The current financing adds the broad resources and commitment of investors who are both uniquely qualified and highly dedicated to the mission of the company.”
Their mission to bring inclusive financial freedom to all is what makes the platform so unique and special to the world of managing finances.
For more information on MoCaFi, visit their website.