OppZo Inc., which calls itself a “mission driven financial technology company focused on unlocking access to capital for small and medium sized businesses,” announced Thursday (June 30) that it had raised $260 million in debt and equity financing.
The equity portion totals $5 million and was led by Arcadia Funds LLC. The debt portion totals $255 million and was led by Arcadia Funds, according to the announcement.
OppZo uses a proprietary artificial intelligence-driven system to originate and service loans.
Across the U.S., OppZo helps “distressed communities” by offering a institutional investors the opportunity to invest in a way that helps those communities. OppZo offers “an attractive risk-adjusted return that has a positive and sustainable social and economic impact on the funded communities.”
“We built OppZo with one mission in mind: to help build thriving communities,” Warren Reed, co-founder and chief executive of OppZo, said in a prepared statement. “Every business owner needs access to capital on terms that are fair and affordable. We understand first hand the impacts of disparity in funding, and we’re delivering the optimal solution to the market.”
OppZo Co-founder and President Randy Garrett said: “Our top priority is supporting the communities we serve and seeing them thrive. We are building an ecosystem that drives both public and private capital to businesses in these distressed communities, and we do so by focusing on building relationships and understanding first.”
Arcadia Funds Managing Director Andrew Hallowell said OppZo helps address a “conundrum” that has long troubled companies in the financial services sector: “How do we pursue impact without sacrificing a sustainable business model?”
OppZo operates in government-designated “opportunity zones” that, among other things, give investors tax advantages.
Arcadia was founded in 2012. Last July, it invested in Miami-based Marco Financial, which provides trade funding to entities in Latin America.
Read more: Funded FinTechs Look To Get More Capital In The Hands Of SMBs
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