A Wilmington-based credit card start-up has received $100 millionin addition to an earlier $200 million equity investment.
Fair Square Financial, LLC, marketer of the Ollo credit card, announced it received the equity investment from The Orogen Group.
“The Orogen investment builds upon the initial 2016 equity commitment of$200 millionby financial services-focused private equity firm Pine Brook. Fair Square will use the new investment to continue its growth trajectory and further its goal of providing credit to hard-working Americans who are often not adequately served by major financial brands,” a release stated.
The card is aimed at the subprime market. (See story below)
“This investment validates our business strategy and management team, and recognizes the remarkable progress we have made since we launched the business,” said Rob Habgood, CEO of Fair Square. “The customer response to our Ollo credit card has exceeded our expectations, and we feel great about our prospects for future growth. This new investment provides additional flexibility and will allow us to meet the high demand for the Ollo card well into the future.”
Habgood is a former executive with Capital One and Bank of America.
Orogen is an operating company created byformer CitiGroup CEO Vikram S. Panditand Atairos Group, Inc. The firm invests in financial services companies. In connection with the investment,Ruchi Madan, managing director of Orogen, andDavid Caplan, partner and general counsel of Atairos, have been appointed to the Board of Directors of Fair Square.
“The Orogen Group is excited to invest in Fair Square and to continue working with its talented and experienced management team,” said Pandit, CEO of Orogen, and a member of Fair Square’s board. “The Fair Square team is taking a proven business model and enhancing it with the latest data and machine learning technology to provide credit to middle class Americans through superior underwriting. We look forward to helping the team build upon their initial success and achieve their growth potential.”
Fair Square uses advances in technology and data to assess risk at an individual level and qualify customers for credit.
“Fair Square’s combination of credit card industry expertise with advanced analytics has quickly made it the first significant ‘CardTech’ business,” saidWilliam Spiegel, co-president of Pine Brook, the majority investor in Fair Square.
For more information about Fair Square products, please visit the Company’s Ollo credit card pages atwww.ollocard.com.