Tech Platform Promise Raises $25M in Series B
Promise, a tech platform that helps people pay debt, has raised more than $25 million in a Series B round, according to a Thursday (Feb. 24) press release emailed to PYMNTS.
The company’s value is now over $520 million. Promise’s business model involves partnering with governments to offer better, more affordable and flexible payment options for utility balances, parking tickets, child support and other government debt.
Per the release, Promise offers zero-interest installment plans with adjustable payment dates. There are also custom reminders, numerous payment options and quality customer support.
Promise also makes use of “sophisticated outreach methods,” making it easier for people to sign up and manage debt.
“As millions across the country struggle to pay their bills, Promise brings a tech-enabled, people-centric solution direct to government,” Phaedra Ellis-Lamkins, founder and CEO of Promise, said in the release. “This is not just the more dignified way to treat people — it also results in greater revenue for governments and eliminates the need for the often predatory collections process.”
The release notes that this round was led by The General Partnership. Others that participated included Kapor Capital, XYZ Ventures, Bronze Investments, First Round Capital, Y Combinator, Howard Schultz and others.
PYMNTS wrote that, in the fourth quarter of 2021, total U.S. household debt rose by $333 billion, hitting $15.58 trillion, according to a report from the Federal Reserve Bank of New York.
Read more: US Household Debt Increased $333B in Q4 of 2021
The debt balance increased by $1 trillion in 2021, with that amount also being $1.4 trillion higher than at the end of 2019 — the largest increase since 2007.
That came with mortgage balances increasing $258 billion in the fourth quarter, hitting $10.93 trillion by the end of December.
“The total increase in nominal debt during 2021 was the largest we have seen since 2007,” said Wilbert Van Der Klaauw, senior vice president at the New York Fed. “The aggregate balances of newly opened mortgage and auto loans sharply increased in 2021, corresponding to increases in home and car prices.”
Credit card balances were up $52 billion. Even then, however, credit card balances were still $71 billion lower than at the end of 2019.