Payday loan alternative startup, LendUp, announced this week it has received a $100 million credit facility. The financing comes from the company’s long-time partner, Victory Park Capital, and will be used to fund future loan growth. The San Francisco-based startup’s combined debt and equity now totals $325 million.
In addition to the financing news, LendUp also surpassed $1 billion across 3.3 million loan originations since launching in 2012. Sasha Orloff, LendUp CEO and co-founder said, “This is an important milestone for LendUp because it proves the viability and sustainability of the market opportunity for socially responsible lending.”
The company’s team of 200+ aims to help consumers rejected by banks find a safe alternative to payday lenders. LendUp’s flagship products include LendUp Loans, a short-term loan that lets users borrow up to $250 for 30 days; and LCard, a credit card made for those who struggle with credit. In 2016, these products helped borrowers save $55+ million in interest and fees (up from $16 million in 2015). LendUp also offers educational materials, such as free online courses, to give cardholders the information they need to make decisions about their financial future. These videos have been viewed more than 1.2 million times.
CEO Sasha Orloff debuted the company’s API at FinovateSpring 2014. The API exposes LendUp’s core to allow partners to leverage its platform. The company won Best of Show at FinovateSpring 2013 for debuting its product that helps the underbanked build credit. In October of last year, H2Ventures and KPMG placed LendUp in the Leading 50 category of its Fintech 100 list.