Esusu, a fintech platform that helps renters build credit scores, has raised $50 million in a Series C funding round at a $1.2 billion valuation.

Renters have remained largely excluded from the traditional credit system, with an estimated $1.4 trillion paid to landlords every year in the U.S., but only 20% of those landlords choosing to report the rent paid. As a result, millions of reliable renters remain in a category referred to as the "credit invisible."

"110 million people in America rent ... and less than 10% of that data shows up on their credit score," said Esusu co-founder and CEO Wemimo Abbey in an interview on CNBC's "Worldwide Exchange" on Thursday. "When people pay rent, we make sure it shows up in their credit score," he said.

While on-time mortgage payments are known to

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