Zed, a fintech startup based in the Philippines, has successfully raised $16.5 million in a Series A funding round led by Accel, bringing its total funding to $22.5 million. This significant investment comes at a time when global venture funding for financial technology startups has surged, reaching $48.7 billion in 2025, marking a 29.5% increase from the previous year. The founders of Zed, husband and wife duo Steve Abraham and Danielle Cojuangco Abraham, are on a mission to provide modern credit access to young professionals across the Asia-Pacific region, a demographic that has often been overlooked by traditional banks due to outdated credit scoring systems.
The inception of Zed can be traced back to an eye-opening experience the couple had during a trip to Manila. After selling their previous company, Symple, a B2B mobile payments network, to Feather in 2020, they traveled to the Philippines, where Danielle is originally from. Upon arriving, they encountered a frustrating situation that would ultimately lead to the creation of Zed. While trying to meet Danielle’s brother at a bar just three miles away, they found themselves stuck in traffic for an hour due to the payday rush, as people flocked to ATMs to withdraw their entire paychecks. This observation was compounded when they noticed that even young professionals, such as Danielle’s brother—a lawyer at a prestigious firm—were unable to obtain credit cards despite their stable jobs and growing incomes. His repeated rejections from multiple banks highlighted a significant gap in the market: young professionals were being denied access to credit simply because they lacked a sufficient credit history.
This realization sparked a determination in Steve and Danielle to explore the opportunity further. They recognized that traditional banks relied heavily on credit scores, which often disadvantage younger individuals who have not yet built a robust credit history. As a result, many financially stable young adults were left without access to essential financial products like credit cards. Zed was born out of this need for a more inclusive approach to credit assessment.
In the early stages of Zed, the co-founders dedicated themselves to navigating the complex regulatory landscape in the Philippines. They spent three years acquiring a financial institution license from the Central Bank of the Philippines, a process that required them to establish compliance and operational organizations capable of meeting stringent banking standards. This effort was no small feat; it involved reinventing the foundational elements upon which traditional banks operate. Traditional credit assessments often focus solely on age-related factors, such as the length of credit history and the number of credit lines opened. In contrast, Zed aims to utilize alternative data sources, including transaction histories and cash flow patterns, to evaluate creditworthiness.
By leveraging these innovative underwriting methods, Zed can serve young professionals who may have stable incomes and responsible spending habits but lack the credit history typically required by banks. This approach not only opens up opportunities for individuals who have been historically underserved but also taps into a vast market potential. With less than 15% credit card penetration in many Asia-Pacific markets (excluding China and Singapore) and over half of the population under the age of 30, Zed is poised to make a significant impact in the region.
Zed launched its first product—a modern credit card—in mid-2024, designed specifically with the needs of young professionals in mind. The card features zero foreign exchange fees, the ability to create single-use or 24-hour cards that automatically close, and a peer-to-peer payment system that allows users to send money as easily as using popular platforms like Venmo. These features cater to the lifestyle of young professionals who prioritize convenience and flexibility in their financial transactions.
Currently, Zed is in an invite-only launch phase, having attracted nearly 200,000 sign-ups through word-of-mouth marketing alone. The company reports a tenfold increase in its customer base and a staggering 500% growth in monthly gross merchandise value since the beginning of 2025. This rapid growth underscores the demand for Zed’s services and the effectiveness of its marketing strategy. The startup generates revenue primarily through interchange fees and interest on purchases made by customers using its credit card.
As Zed continues to grow, the team remains focused on expanding its reach throughout the Asia-Pacific region. Future plans include entering markets such as Vietnam, Indonesia, Malaysia, and India, where similar challenges regarding credit access exist. The founders envision a global expansion that connects young people who share common lifestyles and financial goals, bridging gaps between regions and fostering financial inclusion on a larger scale.
Accel Partner Nafis Jamal, who previously served as head of consumer payments at fintech giant Circle, expressed confidence in Zed’s potential. He noted that the Philippines is one of the youngest and fastest-growing markets in the region, yet many individuals still lack access to credit. Jamal highlighted the co-founding team’s technical expertise and deep understanding of the local customer and regulatory landscape as key factors that influenced Accel’s decision to invest in Zed. He praised the startup’s disciplined execution, combining smart underwriting practices with an intuitive product design that resonates with its target audience.
The success of Zed reflects a broader trend in the fintech industry, where innovative solutions are emerging to address the needs of underserved populations. As traditional banks struggle to adapt to the changing landscape, startups like Zed are stepping in to fill the void, offering tailored financial products that cater to the unique circumstances of younger consumers. The rise of alternative data-driven credit assessments represents a paradigm shift in how creditworthiness is evaluated, paving the way for greater financial inclusion.
In conclusion, Zed’s journey from a simple observation during a trip to Manila to securing significant funding and launching a modern credit card exemplifies the power of identifying unmet needs in the market. By focusing on young professionals who have been historically marginalized by traditional banking systems, Zed is not only creating a viable business model but also contributing to a more equitable financial landscape in the Asia-Pacific region. As the company looks to the future, its commitment to innovation and customer-centric solutions will undoubtedly play a crucial role in shaping the next generation of financial services.