US banking app Dave has secured a USD100 million credit facility from global alternative investment firm Victory Park Capital (VPC). The funding will support the growth of Dave’s banking product and accelerate the company’s expansion into new products and features.

In 2020, Dave rolled out Dave Banking, a spending account and debit card with no monthly fees. Launched in 2017 as a way to help avoid overdraft fees, Dave has grown into the third most valuable challenger banking app in the United States and was named the 26th most disruptive private company in the world. VPC’s partnership with Dave began in May 2018 and this transaction is the second to take place over the course of their relationship.

“We look forward to our continued partnership with Dave as the company enters its next phase of growth and progresses in its journey to make banking more accessible,” says Jason Brown, partner at VPC. “Dave has amassed millions of loyal members by helping solve simple pain points like overdraft protection and automated budgeting, all while giving back to the community, and we are confident that the company will continue to be a significant challenger to traditional financial institutions.”

“We are excited about the flexibility this deal gives us as we continue to expand Dave Banking for the 180 million Americans who live paycheque to paycheque and deserve access to high quality financial products,” says Jason Wilk, CEO of Dave. “Through this expanded partnership with Victory Park we will be making a meaningful impact on communities in the United States and beyond.”

Source: Private Equity Wire