Method, an Austin-based embedded debt repayment startup, has raised $16 million in Series A funding led by Andreessen Horowitz, Ryan writes.
Why it matters: Embedded finance APIs are becoming more sophisticated and enabling fintech developers to offer new applications to end users.
How it works: Method has built tools for developers to embed loan repayment, data, balance transfers and automation into their apps.
It gives developers access to a wide range of end-customer liabilities, including student loans, credit cards, auto loans, mortgages and utility bills, all through a single API.
The firm manages identity verification by tapping data from credit bureaus and wireless carriers to connect consumers to related accounts and liabilities without requiring them to enter user credentials.
It also built an automated payment system enabling fintech developers to streamline debt repayment in their apps.
Between the lines: Method founders Jose Bethancourt and Marco del Carmen got their start building GradJoy, a consumer-facing app to help people pay off student loans.
Along the way, they realized there weren’t many embedded finance tools for adding debt repayment to fintech apps.
Of note: Y Combinator, Abstract Ventures, Ardent Venture Partners, LiveOak Venture Partners and SV Angel are also investors.
Altogether, the company has raised $18.5 million in venture funding since launching in 2021.