Oxygen, a startup that’s bringing digital banking providers to freelancers and micro- and small-sized companies, is in talks to lift a brand new spherical at a valuation of over $500 million, two sources aware of the matter instructed me.
The San Francisco-headquartered agency is in superior levels of talks to lift about $70 million, the sources stated. London-based Tribe Ventures is in talks to steer Oxygen’s Collection B spherical, the sources added, requesting anonymity as a result of the main points are non-public.
Banks within the U.S. — and elsewhere — have historically refused to serve people with no conventional job and a constant wage move.
Hussein Ahmed, who beforehand labored at Amazon, confronted this challenge himself when he began to work as a contract marketing consultant for different startups. “That’s once I stumbled upon the market section we’re serving at this time,” he stated in a podcast final 12 months. Ahmed was working from a WeWork and realized that “everybody round me, from photographers to actual property brokers to accountants, had been going through the identical downside.”
It was then when Ahmed began Oxygen. The startup provides shoppers and small companies accounts at zero month-to-month price. These accounts, that are FDIC insured, could be operated with no minimal stability and include a Visa debit card.
The startup, which counts Y Combinator and Runa Capital amongst its backers, has amassed over 600,000 clients.
Oxygen declined to touch upon the fundraise talks, however by way of a spokesperson Ahmed stated the startup has seen a “large development in 2021,” and elevated its income by 10 instances this 12 months. “We’re having steady conversations about the right way to finest fund our future plans and can remark after we can.”