Priya Jaiswal is a recognized authority in Banking, Business, and Finance, with extensive expertise in market analysis and international business trends. Today, we delve into the strategy behind Esusu’s recent $50 million funding round. The conversation explores the fintech’s evolving partnership strategy, the mechanics of scaling its Rent Reporting as a Service, and its dual focus on leveraging rental data for underwriting while simultaneously tackling rental fraud. We’ll also discuss the broader implications of alternative data on the future of financial inclusion.
Congratulations on the $50 million Series C. How does this funding round strategically differ from your 2022 Series B, and what specific qualities did you seek in new partners like Westbound Equity Partners to support your mission of financial inclusion?
Thank you. The difference between the rounds is really about focus and maturity. Our 2022 Series B, which brought in $130 million, was about achieving massive scale and proving our model, which catapulted us to unicorn status. This $50 million Series C is about strategic depth. We are now laser-focused on refining our core offerings and embedding them deeper into the financial ecosystem. With partners like Westbound Equity Partners, we weren’t just looking for capital; we were seeking true believers in our mission who bring strategic expertise in scaling platforms that drive both profit and purpose. It’s about finding allies who understand the nuance of building a more equitable financial system from the ground up.
Your plan is to scale Rent Reporting as a Service. Could you walk us through the integration process for a bank or credit union using your API, and share a specific metric that illustrates the impact this service has on an end user’s credit profile?
Absolutely. We designed our Rent Reporting as a Service, or RaaS, to be incredibly straightforward for our partners. Think of it as a plug-and-play solution. A bank or credit union can use our embedded API to integrate rent reporting directly into their existing digital platforms, whether it’s their mobile app or online banking portal. This allows them to offer a powerful, value-add service to their customers without a massive technology lift. While every individual’s credit journey is unique, the core impact is profound. For someone who is credit invisible, having their largest monthly expense—rent—consistently reported to the credit bureaus establishes a foundational credit history, often for the first time. This transforms them from an unknown quantity to a viable borrower in the eyes of lenders.
With the new FHFA decision in mind, how are you developing your rental data for underwriting? Also, what specific renter needs are you addressing by expanding Esusu Pay, your rent-splitting feature, and how do these two initiatives work together?
The recent FHFA decision to include rental data in mortgage underwriting was a landmark moment for us; it’s the validation we’ve been working towards. We are now doubling down on ensuring our data is truly underwriting-grade—meaning it’s meticulously verified, structured, and ready for lenders to use in their models. This initiative is perfectly complemented by the expansion of Esusu Pay. We know that income doesn’t always align perfectly with a single rent due date. By allowing renters to split their monthly rent into two smaller, more manageable installments, we’re directly addressing that cash flow friction. These two initiatives are deeply connected: Esusu Pay helps ensure on-time payments, which in turn generates the positive, consistent payment history that becomes the high-quality data used for underwriting.
Following your acquisition of Celeri Labs, you’re launching Esusu Identity Services. What specific type of rental fraud prompted this move, and can you describe how your new AI fraud detector will work to protect both property managers and the 12 million people you serve?
The rental market is facing a significant challenge with application fraud, including the use of synthetic identities and falsified information, which creates huge risks for property managers. Our acquisition of Celeri Labs was a direct response to this growing problem. We knew we had to build a layer of trust and security into our platform to protect everyone involved. Our new AI-powered Esusu Identity Services will analyze application data in real-time to detect anomalies and flag potentially fraudulent activity before a lease is ever signed. This not only safeguards property managers from financial loss and eviction nightmares but also protects the integrity of our entire ecosystem, ensuring that the 12 million people we serve can transact with confidence.
What is your forecast for the role of alternative data, such as rental and utility payments, in the future of credit underwriting over the next five years?
My forecast is that within five years, “alternative data” will simply be called “data.” The term will become obsolete because incorporating information like rental and utility payments will be the standard, essential practice for any responsible lender. The FHFA’s decision was the first major domino to fall, and it has opened the floodgates for innovation. We will see these data sources become a core component of underwriting models across the board—not just for mortgages, but for auto loans, personal loans, and credit cards. This will create a far more holistic and equitable picture of a consumer’s financial health, fundamentally reshaping the credit landscape and unlocking economic opportunities for millions who have been unfairly overlooked.
