Plural invested in US provider of an asset-backed secured credit card Pesto

Venture capital firm Plural, co-founded by Estonian entrepreneurs Sten Tamkivi and Taavet Hinrikus, invested in US provider of an asset-backed secured credit card Pesto. An $11M round was backed by US investment firm Activant Capital, US venture funds Sozo Ventures and Commerce Ventures, US accelerator Y Combinator, and others. 

The startup was founded in San Francisco in 2020 by James Savoldelli. In 2023, Pesto launched Pesto Mastercard. With the card, users can build credit through their assets (for example, coins, gold, silver)—without having to sell them. They send Pesto their assets and, in exchange for this collateral, receive a credit card based on their assets' value and regardless of credit score. Over time, cardholders who often don’t qualify for an unsecured credit card can increase their credit score and, eventually, qualify for one. Thus they are able, for example, to buy a car or rent an apartment. According to Pesto, it offers rates similar to existing credit cards, which are substantially lower than pawn and payday loans clients typically pay. Pesto will use the investments to expand its customer base across the US, with an initial focus on Atlanta and Los Angeles.

Plural Platform is a €250 million early-stage venture fund started by Sten Tamkivi (founder of software company Teleport, acquired by Topia), Taavet Hinrikus (money transfer service Wise founder), Ian Hogarth, and Khaled Helioui in 2022. It focuses on leading early-stage rounds between €1 and €10M. In 2023, it invested in British leg tech Robin AI, London-based AI technology Unitary, which moderates harmful content online, and Danish healthtech Teton.