Zest AI Secures Oversubscribed Customer-Led Financing Round
AI-based loan underwriting platform Zest AI has successfully completed a financing round that was both oversubscribed and led by key customers.
The funding was spearheaded by five prominent clients: SchoolsFirst Federal Credit Union, Members 1st Federal Credit Union, ORNL Federal Credit Union, Truliant Federal Credit Union, and Citi. While the specific amount raised remains undisclosed, the company indicates that this round reflects a significant valuation increase from the previous $200 million round completed in 2024.
Zest AI’s innovative technology is utilized by nearly 300 lenders to implement more advanced and precise scoring methodologies. In contrast to traditional credit scoring techniques that typically analyze 15-20 variables, Zest AI examines thousands of data points to enhance decision-making accuracy.
With over 50 patents to its name, Zest AI has developed and deployed more than 650 proprietary AI consumer credit models. These models empower lenders to make informed lending decisions and optimize their operations.
Feedback from customers who have participated in this investment round highlights the effectiveness of the technology. Bill Cheney, CEO of SchoolsFirst Federal Credit Union, stated, “Our instant approval rate has more than doubled. Integrating Zest AI’s technology into our lending operations has transformed our member experience and business outcomes. Our partnership has exceeded our ambitious vision and continues to deliver real value.”
Mike de Vere, CEO of Zest AI, remarked, “The fact that our customers are also our investors is a testament to the strength of our technology and vision. This financing round underscores the confidence institutions have in our AI solutions to revolutionize their operations.”