Dovly, a consumer-focused credit improvement firm, has reportedly acquired $2 million in seed funding.
The US-based Fintech firm’s round was led by VC firm NFX, which helps companies expand their operations by leveraging network effects and strategic marketplaces. The capital acquired will be used to further develop Dovly’s products and services – which aim to provide an efficient and effective credit improvement solution for consumers.
The Dovly team confirmed that they’ve created an automated credit improvement platform based on an algorithm that aims to increase credit scores. The company claims that 92% of its clients have been able to improve their scores within six months of using its products.
Established in 2018, Dovly has teamed up with several Fintech firms, in order to make its solution more user-friendly and accessible. Dovly’s business partners reportedly include Credit Sesame, Chime, MoneyLion, and Varo Money.
Nirit Rubenstein, CEO and co-founder at Dovly, remarked:
“We [aim to] disrupt the credit repair industry by putting power back in the hands of consumers. For those who suffer from poor credit and limited access to banking services, this funding will help us further achieve our goal of providing the tools and education consumers need to get ahead financially and achieve peace of mind.”
James Currier, managing partner at NFX, noted:
“Consumer financial credit systems are at an important inflection point in the US.”
He added that Dovly offers a platform that could potentially give many more Americans access to financial products which may improve their credit scores and overall financial well-being.
“As Dovly’s user base grows, its algorithm gets stronger and stronger [due to network effects.]”
NFX has made investments in over 300 early-stage startups which have generated over $50 billion “in value,” the company claims.
NFX has advised or invested in businesses from several different sectors, including Mammoth Biosciences, Incredible Health, Outdoorsy, and Firefly. The San Francisco based VC firm’s partners have also invested in AngelList, DoorDash, Lyft, and many other initiatives.