Spinwheel, a unique student debt service, has closed on a solid $11 million funding led by some prominent Fintech investors. QED Investors was joined by Core Innovation Capital, Fika Ventures, and Firebolt Ventures in the funding.
Spinwheel provides a series of APIs, that can be up and running in minutes, to help students manage their loans. The company explains that due to the fact that students receive a new loan every term “student debt is one of the most complex debt categories that exists.” The platform offers a “dead simple” service for companies to quickly embed consumer debt services into apps and sites.
Co-founded by Tomás Campos and Tushar Vaish, the entrepreneurs share a story of personal importance. In a blog post, the founders explain:
“The catalyst for Spinwheel was personal, and scaling it continues to be. Watching our family members struggle to pay off student loans inspired us to find a way to help our loved ones—and the millions of other Americans—improve their financial wellbeing. Too many young people are starting their lives with debt that will accrue over their lifetimes, while solutions have not kept pace with this growing problem. That changes with Spinwheel. And although we’ve made great progress, the journey is just beginning.”
Spinwheel’s mission is to simplify the management and payment of debt “in the apps and services that people use the most.” As there is around 45 million borrowers owing around $1.7 trillion in student debt – the market is large.
You can expect the team to expand the service to other consumer debt verticals soon.