SAN FRANCISCO Innoventry Corp., a provider of automated check-cashing machines, plans to use the $253 million of funding it has raised to quadruple its number of kiosks, to 4,000.
The funding, announced late Thursday, came from Wells Fargo & Co., Capital One Financial Corp., and the automated teller machine maker Diebold Inc., among others.
The additional kiosks are to be deployed at sites operated by the companys partners, Albertsons Inc., Kmart Corp., Kroger Co., and Wal-Mart Stores Inc.
Frank Petro, Innoventrys chief executive, said the companys check-cashing machines are intended for the roughly 65 million people who lack checking accounts and currently use storefront check cashers, which charge fees of 2.4% to 2.5%. Innoventry charges about 2% for its transactions, he said.
Innoventry expects to turn a profit by late summer or early fall, Mr. Petro said. Though check-cashing will remain its bread-and-butter service, it also plans to sell money orders and wire transfers in the summer and to make loans and issue credit cards next year.
Since it was founded in 1998, Innoventry has enrolled more than one million customers, cashed more than $1 billion of checks, and raised more than $400 million.
It was founded as a joint venture of Wells Fargo and Cash America International, a pawnshop chain.