Today, Esusu, a platform that aims to dismantle barriers to housing, announced the closing of $2.3 million in seed extension bringing total capital raised to $4 million.
Humble Beginnings
The name Esusu is a Yoruba word that describes informal savings in traditional African societies.
Co-founder Abbey Wemimo came up with the idea for the app when his family, led a single mom of three, struggled to afford his education. His relatives had to pool their resources to afford his education, and his mother contributed much of the money.
The Platform
Esusu’s rent reporting platform captures rental payment data and reports it to credit bureaus to boost credit scores. This enables tenants to build credit while property owners can encourage on-time payments. Esusu currently operates in over 30 states and covers over 200,000 rental units.
“Esusu’s vision to use data to eliminate the racial wealth gap is driven by the role that credit and housing play in financial stability and wealth accumulation in the United States. Our fundamental belief is that where you come from, the color of your skin or your financial identity shouldn’t determine where you end up in life. We are privileged to join forces with world-class investors to address these systemic issues through the innovative use of data,” said Esusu Co-Founders, Abbey Wemimo and Samir Goel.
Currently, less than 1% of rental payments are reported into the credit bureaus despite being the largest expense for most Americans. According to HUD and Urban Institute, rental data is one of the strongest predictors of a tenant’s credit risk.
Esusu’s model presents a profitable solution for property managers to help keep renters in their homes while equipping financial institutions with the data to underwrite renters with limited credit history.
We are experiencing the greatest public health crisis in a century, the worst economic collapse since the Great Depression, and accelerating income inequality. Concomitantly, we are dealing with systemic racism that stifles the promise of America. “At Esusu we have a unique opportunity to challenge the status quo by using our platform to dismantle barriers to housing for working families and over the longer horizon, eliminate the racial wealth gap,” continued Abbey Wemimo and Samir Goel.
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