MoCaFi, a fintech platform that helps traditionally underserved communities build wealth, announced yesterday that it has raised $23.5 million in Series B funding led by Commerce Ventures.
MoCaFi’s mission is to help excluded communities create wealth through better access to public, private, and social capital. The company’s Financial Services as Infrastructure™ platform works with government and philanthropic organizations to provide cash assistance, mobile banking, and financial programming to individuals and families.
“We are excited to welcome the new investors to the MoCaFi mission, and appreciate the support of our existing investors, many of whom continue to show their trust by participating in the latest round,” said Wole Coaxum, MoCaFi CEO & Founder. “This Series B round allows MoCaFi to scale quickly and validates our unique business proposition. With this capital and more importantly, support from these terrific strategic investors, we can continue to innovate and bring our products and services to more municipalities, government entities and community partners – ultimately helping more people.”
MoCaFi’s platform has already had a significant impact on underserved communities. In Birmingham, Alabama, for example, MoCaFi has helped to distribute over $20 million in emergency assistance to thousands of families. The company has also worked with the City of Los Angeles to provide financial assistance to homeless individuals and families.
“MoCaFi has been the perfect partner for the City of Birmingham,” said Kelvin Datcher, Senior Advisor to the Mayor of Birmingham. “Over the last three years, we have delivered almost $20 million in emergency assistance to thousands of families – keeping them in their homes and keeping the lights on, and we couldn’t have done it without MoCaFi. More than just a payment processor- the MoCaFi team has been a fully engaged thought partner from conception through execution. We are incredibly appreciative of their support and hope to work with them again soon!”
MoCaFi’s products include a Mastercard branded Immediate Response Card and Demand Deposit Account providing no-fee cash withdrawals, no-fee deposit options, online banking services and access to credit-building tools and financial literacy programs. MoCaFi’s Blueprint program empowers users to manage their finances, track credit scores, reduce debt, and work towards mortgage readiness. On Our Block by MoCaFi™ community-banking pop-ups bring its banking products, financial programming and resources to support Black and brown communities in building personalized pathways to wealth.
Billions of dollars in public benefits are left unspent due to various complexities and inefficiencies in disbursement methods. MoCaFi’s platform provides governments with a solution that increases adoption and delivers benefits efficiently while reducing fraud.
With this new funding, MoCaFi plans to expand its platform to reach more underserved communities and to develop new products and services that will help individuals and families build wealth.