April 25, 2024

Hello Alice Now Valued At $130M Following Series C Round, Despite Being Sued For Funding Black Businesses

Online resources business Hello Alice recently announced its Series C funding round closure despite facing a controversial class-action lawsuit. 

The lawsuit alleges their partnership with Progressive Insurance to offer grants specifically to Black-owned businesses was racially discriminatory.

Hello Alice’s Commitment to Diversity and Inclusion

In October 2023, Hello Alice found itself at the center of a legal battle when America First Legal, Mitchell Law PLLC, and Ashbrook Byrne Kresge LLC filed a lawsuit alleging racial discrimination.

This was due to the company’s initiative, which provided $25,000 in grants to 10 Black-owned businesses in partnership with Progressive Insurance. 

This action was part of a broader trend where companies’ efforts to address historical inequities faced legal scrutiny

However, Hello Alice maintained its stance on equality and inclusion, stating that it was founded on the principle of equality and aimed to ensure everyone had equal opportunities.

Series C Success

Hello Alice has closed a Series C funding round, bringing its total valuation to $130 million.

This round included investments from QED InvestorsMastercard, and figures like Guy Fieri and Tamera Mowry. 

The additional funds are for expanding Hello Alice’s offerings, including enhancing their AI-driven financial health tools. 

“We are thrilled to hit the milestone of 1.5 million small businesses utilizing Hello Alice to elevate the American dream,” said Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice.

“There are more entrepreneurs launching this year than in the history of our country, and we will continue to ensure they get the capital needed to grow.”

Sara Keenan

Tech Reporter at POCIT. Following her master's degree in journalism, Sara cultivated a deep passion for writing and driving positive change for Black and Brown individuals across all areas of life. This passion expanded to include the experiences of Black and Brown people in tech thanks to her internship experience as an editorial assistant at a tech startup.