Announcing new funding for Spinwheel
Today, we’re thrilled to announce that we’ve closed $11M in new funding for Spinwheel, the read and write debt API infrastructure platform that makes it dead simple for companies to embed consumer debt solutions in their apps and services.
– by Tomas and Tushar
We came to this work after seeing firsthand the real — and often devastating — impact that the burden of debt can have on people and their families. 4 in 5 Americans hold some form of debt; the majority of us have a loved one who does, too. But as fintech veterans and developers, we realized that we could potentially have a much greater impact on this problem by building solutions at the infrastructure level.
When we started Spinwheel, it was a very personal decision to start with solutions for student debt. This work has never been more urgent; today, 45 million borrowers collectively owe $1.71 trillion and half of the American households are impacted. With student loan debt now the second-highest consumer debt category — and economic consequences of the COVID-19 pandemic still looming — we think it’s critical and good business for employers, retailers, banks, financial apps, and other institutions to support and participate in solutions for indebted Americans. That starts with giving these companies easy-to-use tools, modern technology, and intelligence to help folks understand, manage, and pay down their debt.
Student debt is the most complicated consumer debt and is often the first form of debt a person takes on. This large liability at an early life stage has a transformational impact on their life. As life progresses, we typically take on additional debt in the form of credit cards, auto loans, and home mortgages. At Spinwheel, we believe that your debt and debt repayment shouldn’t hold you back and that paying it down shouldn’t be so burdensome. So we’ve made it easy to embed the management and payment of the debt in the apps and services that people use the most. By increasing access, choice, and transparency, we aim to improve outcomes and reduce the burden of debt for all borrowers.
We’re joined in our mission by a committed group of investors who share our vision, including QED Investors, with participation from Core Innovation Capital, Fika Ventures, and Firebolt Ventures. We’re also humbled to have an amazing group of operators and visionaries who participated including Jonathan Weiner, Charley Ma, Mike Blandina, Jonathan Stein, and Anil Aggarwal. Their support and capital will help us make the best-embedded student debt solution even better while enabling us to quickly expand our platform to include other forms of consumer debt, which will be coming soon.
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. If you share our vision of empowering borrowers to understand, plan, monitor, optimize, pay, refinance and reduce the burden of debt, join us. We’re hiring.
Spinwheel is the leader in debt API development, and thanks to their easy-to-use, low-code drop-in API modules, your developers are off to the races from the get-go. Spinwheel has a strong focus on helping tackle student loans and student loan repayments and dedicates its efforts to assisting borrowers to get out of debt sooner by empowering borrowers to have a happier and healthier relationship with debt.
Learn more about Spinwheel here or contact our sales team here.