Chipper Raises $5.6M to Eliminate Student Loan Debt and Address Latinx Funding Gap
AUSTIN, Texas–(BUSINESS WIRE)–Crusher, the app that helps student borrowers reduce debt faster, today announced it has received a seed investment of $5.6 million. The round was led by Freestyle Capital, Slauson & Co. and Propel Venture. Backers also include investors from the Cap Table Coalition and fintech leaders Ethan Bloch of Digit, Loop founder John Henry and Craig Lewis of Gig Wage.
With this investment, Chipper expects to rapidly grow its existing user base of over 80,000 users, as over 45 million people will return for redemption in May. Funds are being allocated toward lifting the moratorium through team growth, marketing and product expansion, including the launch of new programs like Chipper Rewards. By accelerating its capabilities and offering comprehensive solutions to its users, Chipper will surely become the go-to app for repaying student loans.
“As a first-generation high school and college graduate who has experienced the hardships of conquering student debt, I wanted to create a simple solution for all student borrowers to manage their debt and take a realistic path to financial freedom,” said Tony Aguilar, Founder and CEO of Chipper. “With this new round of funding and payments resuming in May, we know 2022 will be a big year for Chipper. This funding will allow us to expand our user base and help borrowers through their student loan journey from start to finish. »
Launched in 2020, Chipper empowers student borrowers to improve their financial health by providing seamless, transparent student loan repayment solutions and is the only student loan app to support borrowers every step of the way. Chipper saves users an average of $309/month and has helped qualified candidates receive a total of $81 million in rebates since launch. The company is currently experiencing 40% month-over-month growth, demonstrating its unique position in the student loan space.
Chipper’s income is earned through a tiered membership program. It’s completely free to sync loans from your managing agent and explore discount and repayment options. Users can register with Chipper+ for additional support, automatic enrollment in forgiveness or refund programs, and access to roundups for $4/mo. Users can also access the roundup service on their own for $2/month. For now, all Chipper services are free until the loan moratorium is lifted on May 1, as borrowers are not making payments.
“This round of funding is more than an investment in our product and our team; this is personal to me as a latino founder as we work to bridge the gap on both sides of the table when it comes to venture capital. As we climb, we must take others with us where we can. We started Chipper with a mission to help those hardest hit by student debt, who are people of color. I am thrilled to partner with the Cap Table Coalition and pledge over 25% of this round to various investors,” said Aguilar.
“This new funding round positions Chipper for tremendous growth over the coming year,” said Austin Clements, Managing Partner at Slauson & Co. “We believe Chipper is revolutionizing the way people approach the lending process. challenging and confusing student, making it digestible and much more accessible to the millions of people who need it.We are proud that this joint investment will enable Chipper to chart new paths for expansion and product development, contributing to its further great mission to help millions of graduates struggling with student debt, especially people of color and women.Slauson & Co. looks forward to what Tony and Chipper will accomplish with this new investment.
There is a gap in the venture capital community with only 3% of venture capitalists being black or Latino, and only 1.1% of all private funds having black, Latinx or female managers. The Cap Table coalition is an organization comprised of high-growth startups, venture capital firms, and emerging fund managers working to close the racial wealth gap. The Cap Table Coalition offers companies a simple way to increase their representation and funding in the venture capital ecosystem. High-growth startups looking to get involved can commit to allocating 10% of all their funding rounds to the organization to distribute to Black, Latinx, and other underrepresented investors. Chipper takes this commitment one step further and contributes 25% of the company’s fundraising to the coalition.
“This funding round is a great example of what can be achieved if we bring together founders and diverse investor groups looking to transform the venture capital landscape,” said Elizabeth Grier of The Cap Table Coalition. “These investors envision the future of venture capital — and technology as a whole — as one that includes great minds from all gender groups, all ethnic backgrounds, and all walks of life.”
Chipper is a simple app that helps users optimize and reduce their student loan debt faster than traditional repayment methods. A complete digital solution for student borrowers, Chipper’s algorithm identifies repayment, management and even loan cancellation options suitable for individual users. Chipper guides users through their recommended plans, streamlines paperwork, and provides personalized advice from its team of student loan experts. With a mission to empower student borrowers to make smart decisions and ease the burden of massive debt, Chipper offers an authentic path to financial success and well-being.
Founded by Tony Aguilar in 2018 and based in Austin, TX, Chipper has already helped over 80,000 clients reduce student debt up to four years faster. Included shredder services save an average of $309 per month. Chipper allows customers to round up their daily purchases and apply that amount to their student loans, so that small contributions reduce debt into huge savings. Chipper also offers multiple services and solutions including remission, reduced payments and more for all student borrowers.
About the Cap Table Coalition
The Cap Table Coalition aims to diversify the venture capital ecosystem and close the racial wealth gap by creating investment opportunities for Black, Latinx, LGBTQ+, Native American, women and other investors traditionally marginalized. The Cap Table Coalition was inspired by the Act One Diversity Rider for VCs and Finix’s unique fundraising efforts to diversify startup cap tables. The Coalition has made it as easy as possible for all businesses and businesses to join the movement.