Key Takeaways
- • InvestiFi secured $20 million in Series funding led by Vibe Credit Union, marking the largest investment to date in a fintech platform exclusively serving credit unions and community banks.
- • The funding round included participation from institutional investors BankTech Ventures and six credit union clients: Idaho Central Credit Union (ICCU), United Financial Credit Union, Coastal Credit Union, Mid Minnesota Credit Union, Truity Credit Union, and Southpoint Credit Union.
- • InvestiFi has expanded its client base from four institutions 18 months ago to more than 60 credit unions and community banks, with recent partnerships including Utilities Employees Credit Union and existing clients such as PenFed Credit Union and Heartland Credit Union.
- • The embedded investing platform enables credit unions and community banks to offer digital trading capabilities directly within their deposit accounts, featuring fractional investing across 6,500+ stocks and ETFs, individual retirement accounts, cryptocurrency trading, and robo-advisory services.
- • The funding will support product expansion and scaling efforts targeting Zillennial deposits, addressing retention challenges for credit unions and community banks competing with larger financial institutions.
Summary
InvestiFi, a fintech platform founded in 2020 by CEO Kian Sarreshteh, has raised $20 million in its largest funding round to date, led by Vibe Credit Union, an existing client based in Michigan. The round represents a significant milestone for a company operating as a Credit Union Service Organization (CUSO) focused exclusively on the credit union and community bank sector. Participation included BankTech Ventures and six additional credit union clients that serve as both investors and customers, underscoring strong conviction from the financial institutions InvestiFi serves.
The company has demonstrated accelerated growth in its customer acquisition trajectory. InvestiFi expanded from four clients 18 months prior to more than 60 credit unions and community banks at the time of this announcement. This growth reflects increasing demand among mid-sized financial institutions seeking to compete with larger banks by embedding investment capabilities into their digital banking platforms. The platform's client roster includes established institutions such as PenFed Credit Union, Heartland Credit Union, and Sunstate Bank, with the recent addition of Utilities Employees Credit Union, a Pennsylvania-based institution serving over 64,000 members across the United States.
InvestiFi's platform enables credit unions and community banks to provide digital trading capabilities directly from customer deposit accounts, addressing a critical gap in the competitive landscape. Current product offerings include fractional share investing across more than 6,500 stocks and ETFs, individual retirement accounts, stablecoins, cryptocurrency trading, and a guided robo-advisory service. These integrated features allow financial institutions to retain younger depositors (Zillennial demographics) by offering investment access without requiring customers to migrate to external brokerage platforms.
The capital infusion will be deployed toward expanding product offerings and scaling operations across the credit union and community bank sectors. This funding positions InvestiFi to accelerate product development, enhance platform capabilities, and expand its addressable market within the 4,800+ credit unions operating in the United States, many of which lack in-house investment infrastructure.
The company has demonstrated accelerated growth in its customer acquisition trajectory. InvestiFi expanded from four clients 18 months prior to more than 60 credit unions and community banks at the time of this announcement. This growth reflects increasing demand among mid-sized financial institutions seeking to compete with larger banks by embedding investment capabilities into their digital banking platforms. The platform's client roster includes established institutions such as PenFed Credit Union, Heartland Credit Union, and Sunstate Bank, with the recent addition of Utilities Employees Credit Union, a Pennsylvania-based institution serving over 64,000 members across the United States.
InvestiFi's platform enables credit unions and community banks to provide digital trading capabilities directly from customer deposit accounts, addressing a critical gap in the competitive landscape. Current product offerings include fractional share investing across more than 6,500 stocks and ETFs, individual retirement accounts, stablecoins, cryptocurrency trading, and a guided robo-advisory service. These integrated features allow financial institutions to retain younger depositors (Zillennial demographics) by offering investment access without requiring customers to migrate to external brokerage platforms.
The capital infusion will be deployed toward expanding product offerings and scaling operations across the credit union and community bank sectors. This funding positions InvestiFi to accelerate product development, enhance platform capabilities, and expand its addressable market within the 4,800+ credit unions operating in the United States, many of which lack in-house investment infrastructure.
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