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Boro plans to use its funding to spread out its offerings to more colleges and universities in more places, and further advance its financial technologies by leveraging LexinFintech's expertise in helping under-banked Generation-Z users in China
FREMONT, CA: Boro, an affordable loan provider and financial help to students who have been traditional lenders, has raised $12 million in Series A. The funding was led by Chinese fintech company, LexinFintech. Today, college students face many financial hardships to complete their studies. With no credit history, they are usually denied any kind of safe and affordable loan options. Expenses of textbooks, class fees, apartment deposits, etc. pile up and create financial pressure on students, which becomes one of the strongest reasons for dropout.
"Our goal is to create meaningful opportunities for students to build healthy borrowing habits that will serve them well beyond their time in college," said Hao Liu, co-founder, and CEO at Boro. "Students today are overserved by unethical lenders. Boro breaks that pattern by helping users get access to stress-free financing that helps them grow their financial confidence, and protects them from high-interest rates and hidden fees."
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[vendor_logo_first]Boro plans to use its funding to spread out its offerings to more colleges and universities in more places, and further advance its financial technologies by leveraging LexinFintech's expertise in helping under-banked Generation-Z users in China and managing risk with superior technologies. The company will also increase its market penetration in the U.S. BoroCash that was launched in last July and is currently available in 15 states. Boro has multiplied its number of customers with a credit line by more than 300 times.
Boro expects that its product could benefit about one-third of the 20 million college students in the U.S.
"BoroCash kept me from paying excessive late fees on my rent," said Lyric Campbell, a student at Florida A&M University and Boro user. "I work full-time while going to school full-time, and sometimes money can get tight! With BoroCash, I don't worry about being charged outrageous fees like many payday loans are so famous for."
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