Goldman Sachs Alternatives, through its Horizon Inclusive Growth, invests in growth equity investments across healthcare, education, workforce development and financial inclusion. The fund will write a pair of $25 million checks in coming months to lead the $60 million Series C round of Kashable, a New York-based fintech company that has deployed some $2 billion in low-cost loans to workers since 2013 via employer partnerships.
Kashable’s loans, which range from $250 to $30,000, are used to cover emergency expenses and are repaid through wage allotments. The company also offers credit monitoring and other financial wellness tools as an employee benefit.
“Access to responsible financial tools is a critical driver of economic mobility,” said Goldman Sachs’ Greg Shell. “Kashable has built a proven, scalable platform that empowers employers to play a meaningful role in their employees’ financial wellbeing.” Existing investors Revolution and EJF Ventures also participated in the round.
Employee wellbeing
Financial stress is quietly draining workers in the US, fueling absenteeism, eroding productivity and pushing employees out the door. Kashable aims to keep them out of the hands of predatory lenders and use employer payroll systems to reduce credit risk and lower its interest rates.
“Employer-sponsored financial wellness, anchored by fair, transparent access to low-cost credit, is rapidly becoming a core pillar of the next generation of consumer finance,” said Kashable’s Rishi Kumar.
Kashable’s loans are sponsored by hundreds of governments, universities, hospitals, school districts and large companies, such as Cigna, Amazon, IKEA, UPS, the state government of Illinois and Temple University.