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Credit Sesame, the credit and loan management startup backed by Menlo Ventures, laid off 14% of its workforce as its credit business gets squeezed.

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  • Credit Sesame laid off close to 14% of its workforce on Wednesday, Business Insider has learned. 
  • The Mountain View-based fintech startup helps customers raise their credit scores, compare loan-rates, and gives recommendations for refinancing home mortgages. 
  • The company was last valued at $251 million in 2018. CEO Adrian Nazari told TechCrunch that it was on track to be valued at over $1 billion the next year. 
  • Visit Business Insider's homepage for more stories.
Credit and loan management startup Credit Sesame laid off close to 14% of its workforce on Wednesday, as some fintech startups begin to stumble amid the coronavirus pandemic.
The Mountain View-based company confirmed that it cut 22 out of 160 employees, in a statement to Business Insider. It also said that restrictions from credit suppliers amid the pandemic had squeezed its credit business, which allows customers to monitor credit scores.
"Due to restrictions by our credit suppliers as a result of COVID-19 and the effect it has had on our credit business, we made the decision to say goodbye to 22 of our 160 employees," a statement from Credit Sesame said. "This was an incredibly difficult decision for us, but one that was necessary to continue to serve our customers long term."
Credit Sesame is a longstanding startup in the personal finance space, competing alongside incumbents like Credit Karma and NerdWallet. It launched in 2010, with the aim of improving financial health for its customers by helping them compare loans and keep track of credit scores. The company also issues recommendations for refinancing home mortgages. In addition, it launched a digital banking service in March 2020, focused on allowing customers to improve credit scores.
The company has so far raised $135.4 million, and counts Menlo Ventures and Capital One Ventures among its investors. Before the coronavirus pandemic hit the US, the startup said it planned to go public this year, TechCrunch reported.
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