What Is Spinwheel?
The company was founded in 2019 by entrepreneurs Tomas Campos and Tushar Vaish. Before launching their startup, the two founders worked together in the business world at Blackhawk Network, a privately held company that operates in the prepaid gift card and payments industry, and Westfield Retail Solutions, a business that supports global retailers.
According to the company website, the idea for Spinwheel came from the personal experiences of Campos’s sister and niece trying to pay down student debt. Student loan debt has increased about 300% since 2004, with the average debt faced by graduates totaling $32,731. “As a founding team who previously built the APIs [Application Programming Interface] and financial technology for one of the largest payment networks in the world, we wanted to use our skills to help Americans struggling with debt,” the founders wrote on the business website.
The solution proposed by this startup is a platform that embeds the payment, management, and application of loans into the apps customers use the most. The technology created by the business serves to simplify complex payments and paints a complete picture of a person's finances based on its AI-powered insight.
Money and Investors
The money raised in the Series A round disclosed this month is the only fundraising the company has made public so far. However, according to investment tracking platform Crunchbase, Spinwheel raised an undisclosed amount of money in a seed round in January 2019.
This Series A brings the total amount raised by this startup to $11 million. The round involved four different investors that injected capital into the business. QED Investors, a venture capital firm that supports high-growth businesses, led the round for Spinwheel. Meanwhile, Core Innovation Capital, Fike Ventures, and Firebolt Ventures also all invested in the company.
QED co-founder Frank Rotman praised the startup for creating a “rare win-win for the entire ecosystem” in a press release about the funding round: “Spinwheel is creating a holistic toolkit of native APIs that will ultimately allow hundreds and thousands of businesses to innovate and solve problems for millions of people in the US looking to pay down their loans.”
The Future of the Company
The startup plans to use this money to scale its product. With growth in mind, the company is also planning to double the size of the team working at the business, which currently lands at six. Testing the waters, Spinwheel launched its product with a focus on student debt. However, this money will help the company expand into other categories of debt — as it always planned to do. The goals for expansion include credit card, auto, and mortgage debt, which the startup hopes to make waves in over the next year.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.