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When San Diego-based lender Global Analytics bought a Philadelphia startup last year, it billed the acquisition as the perfect jumping off point to introduce its product to U.S. borrowers.
Global provided loans to consumers who were unable to get traditional bank loans and who often faced hefty payday lender interest rates. Global focused its efforts in the U.K. and eventually became the country's second-largest online installment lender with revenues topping $100 million.
Global's startup target was Workpays.me, which let employees buys appliances, electronics and other retail products with zero interest, paying off the debt through payroll deductions.
"We thought the marriage made in heaven was taking their manual business idea and fully automating it," said Michael Thiemann, Global's CEO at the time.
But Thiemann said the automation work required more capital than Global had access to and investors wanted a way to back the venture directly instead of Global overall. So he amicably stepped down to spin off the division, now called Zebit Inc., into its own company.
Zebit launched last month with $10 million in Series A venture capital, backed by Crosslink Capital, Wildcat Venture Partners, Leapfrog Ventures and Correlation Ventures. Global said it is still a significant shareholder though it holds less than half of Zebit's equity. It deferred all comment on the Workpays integration to Thiemann.
An Employee Benefit
Zebit is offered to companies as a potential employee benefit, like a 401k plan. Employers and workers pay nothing to participate, though employers have to give Zebit access...