Why is fintech platform MoCaFi securing big investment?
Mobility Capital Finance (MoCaFi), a financial technology, mobile-fi rst banking platform has raised a whopping US$12 million Series A Round.
The Series A Round was led by Tom and Wende Hutton (venture capital firm XL Innovate), who were early investors in SoFi, Lemonade (the world's first peer-to-peer insurance firm), and other successful fintech start-ups, and includes investments from the Citi Impact Fund, Mastercard , 1Flourish Capital, Commerce Ventures, and several family offices. Previous investors also participated including Radicle Impact, Portfolia Rising America Fund and the Partnership Fund for New York City.
According to Tom Hutton, who has also joined MoCaFi’s Board of Directors, “the current financing adds the broad resources and commitment of investors who are uniquely qualified and highly dedicated to the mission of the company”.
What is MoCaFi’s mission as a platform?
So, what is it about the MoCaFi platform that has attracted the endorsement of such an accomplished and impactful group of investors?
Essentially, MoCaFi is making financial access and management inclusive and equitable. Committed to bringing financially underserved communities in the US into the digital economy, the platform addresses limited economic mobility and lack of financial equity in Black and Hispanic communities across the US with its high-quality, low-cost financial products and services.
For Dan Skaff, Managing Partner of Radicle Impact and MoCaFi director, who believes that for the longest time the “most deserving communities and entrepreneurs among us” have been overlooked, MoCaFi provides the answer, a “fair, transparent and economically just financial services to LMI communities with an eye towards the narrowing the wealthy gap for all families”.
According to Wole Coaxum , Founder, and CEO of MoCaFi, the platform has launched a “new strategy that allows municipalities to systematically address a significant market failure – the lack of access to banking products for large portions of the population”.
The model reimagines how cities work with financial services to deliver banking and disbursement solutions to all their residents, he adds.
Why partnership and collaboration is so key
MoCaFi’s efforts in meaningfully impacting “the lives of millions of underserved Americans”, says Hutton, bolstered by its participation in the Mastercard Start Path program, has enabled the platform to scale its mobile banking platform to include both Demand Deposit Accounts as well as disbursement accounts for disaster-related and other payments.
The platform collaborates closely with Equifax and TransUnion to empower customers to improve their overall financial literacy and augment their credit file with the addition of rent payments and other recurring bills that are processed on the MoCaFi platform.
Last December, MoCaFi partnered with The City and County of Honolulu to assist almost 4,000 households that suffered economic hardship from the pandemic. MoCaFi's work also supports the Respect initiative offered in partnership with the YWCA of Metropolitan Chicago working to eliminate racism and financially empower women. The Company will announce several additional relationships with cities and other organizations across the United States in the coming months.
"In partnership with cities, MoCaFi is bringing financial empowerment and influence on communities. Financial inclusion and greater access to the digital economy are essential ingredients in building greater prosperity and engagement for our citizens," said Fred Terrell, MoCaFi Director and investor.