Clutch Secures $65M Series B Funding to Propel Credit Unions into the FinTech Era

SAN FRANCISCO, Jan. 23, 2025 /PRNewswire/ -- Clutch is turning credit unions into FinTechs, and with the successful completion of a Series B funding round is now equipped with $65million to further transform the way credit unions deliver products and services to the members and communities they serve.

The Series B funding round was led by Alkeon Capital Management with participation from Andreessen Horowitz, TruStage Ventures as well as Peterson Partners. "As the fastest growing, most widely-adopted and most holistic modern digital onboarding solution in the credit union industry, Clutch has quickly transformed from a young startup to a mission critical software provider for our credit union clients. With now more than 200 months of cash runway, Clutch is uniquely positioned to be the credit unions' one-stop-shop for all its consumer-facing technology needs" said CEO and Co-founder Nicholas Hinrichsen.

This new capital will support Clutch's ambitious growth plans and product innovation including investments in AI and expanded platform capabilities to help credit unions compete more effectively for today's digital-first consumers.

"We strongly believe that we can best serve the credit union movement by partnering with the existing technology providers and thereby leveraging the investments our credit union clients have already made," said Chief Product Officer and Co-founder Chris Coleman. "No credit union leader wakes up in the morning, wanting to kick off a 2-year long LOS conversion. Replacing your LOS will cost you 2 years - 2 lost years with no real progress. Real progress happens when you work with companies like Clutch that enable you to serve your members like a FinTech while getting the most out of your existing systems" added Head of Product Tamanna Kottwani.

Darlene Johnson, EVP & Chief Strategy and Transformation Officer at Suncoast Credit Union, echoes the sentiment: "we're not competing with other credit unions or banks. We're up against Uber, Amazon and Netflix - tech giants that have perfected consumer experiences and set the standard for instant gratification."

Clutch, which builds omnichannel digital consumer banking origination software for credit unions, was founded in 2020 by the MIT and Stanford graduates Christopher Coleman and Nicholas Hinrichsen, who had sold their previous company to Carvana. Clutch has seen explosive success thanks to its commitment to the credit union movement and its mission of helping credit unions become the obvious choice for every consumer's financial need.

Clutch has onboarded over 135 credit union clients across all states and sizes, including six of the top ten largest institutions in the country, each leveraging Clutch's unified digital origination platform to serve the consumer loan and deposit account needs of their members.

Nicholas credits Clutch's momentum to the company's obsession for customer success, the company's partnerships with 31 out of the 33 credit union leagues, and its strong relationships with the leading credit union technology providers. "Deeply understanding the nuances of the credit union's business and technology helps us solve the right problems, the right way. We are all-in on credit unions because generic technologies that serve banks and FinTechs alike fail to promote the unique way that credit unions do business - it's the uniqueness of credit unions and their mission that helps deliver exceptional value to members."

"The not-for-profits are poised for a season of rapid growth. With their member-centric service charters, focus on helping consumers make financial progress, and lower cost of capital, credit unions can and should be the primary financial service provider for their members - current and future. And that's doubly true in today's decreasing rate environment," said Mark McLaughlin from Alkeon Capital. "Banks and FinTechs already cannot match the combination of friendly service and attractive interest rates that credit unions offer. Clutch takes that edge to the next level by getting credit unions to digital parity, giving credit unions an unfair competitive advantage."

About Clutch: Clutch is a FinTech company that partners with credit unions to modernize their operations by providing digital solutions that enhance loan origination and deposit account onboarding. Clutch's platform offers seamless, secure experiences for both members and employees, increasing operational efficiency, cross-selling opportunities, and overall customer satisfaction. Since its founding in 2020, Clutch has expanded its suite of services, including digital loan applications and deposit account openings, while helping credit unions grow their portfolios. With over $10 billion in consumer loans funded and deposits raised, Clutch continues to drive innovation in the financial sector.

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SOURCE WithClutch