U.S. challenger bank Dave has secured a $100 million credit facility from alternative investment firm Victory Park Capital (VPC).
Jason Brown, partner at VPC, said in a Thursday (Jan. 28) press release that the firm is on board with Dave’s mission to “make banking more accessible” and has helped people solve “pain points” related to banking, like overdraft fees and budgeting.
“Dave has amassed millions of loyal members … and we are confident that the company will continue to be a significant challenger to traditional financial institutions,” Brown said.
The startup was founded in 2017 in Los Angeles by Jason Wilk, who serves as chief executive officer; John Wolanin, chief design officer; and Paras Chitrakar, chief technology officer. The company rolled out Dave Banking in 2020, featuring a spending account and debit card with no monthly fees. The company has over 8 million users.
VPC and Dave teamed up in May 2018 and the credit facility is the second transaction they’ve done together. Dave is now the third most valuable challenger banking app in the U.S. and was named the 26th most disruptive private company in the world, according to the release.
“We are excited about the flexibility this deal gives us as we continue to expand Dave Banking for the 180 million Americans who live paycheck to paycheck and deserve access to high-quality financial products,” said Wilk. “Through this expanded partnership with Victory Park, we will be making a meaningful impact on communities in the United States and beyond.”
In October, Dave hired Jonathan Mildenhall as chief marketing officer. A former marketing executive with Airbnb, Mildenhall had Dave as a client at the 2018 consultancy he founded after leaving Uber.
Payments processor Galileo, headquartered in Salt Lake City, Utah, recently partnered with Dave to extend a variety of payment solutions.