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LendKey Raises $13 Million in Equity and Debt Financing

Lending-as-a-service specialist LendKey raised $13 million in Series C funding this week. The round consisted of both equity and debt financing ($8 million of the former, $5 million of the latter) and was led by Portland, Maine-based North Atlantic Capital. Also participating in the investment were existing investors DFJ, Gotham Ventures, TTV Capital, and Updata Partners.

“Traditional financial institutions are now more than ever adapting to evolving customer needs to remain competitive and better reach millennials,” LendKey CEO and founder Vince Passione said, “LendKey empowers these institutions to compete in today’s lending market by digitizing their loan businesses.” This week’s investment boosts LendKey’s total capital to more than $27 million. Passione said the financing will help the company “meet the strong bank and credit union demand” for its services. LendKey plans to expand its regional office in Cincinnati, Ohio, as well as add talent in account development and sales.

Pictured (left to right): CEO and founder Vince Passione and CPO Strati Papgeorge demonstrating LendKey Marketplace at FinovateSpring 2015.

North Atlantic Capital Managing Director Mark Morrissette praised LendKey’s “impressive industry knowledge and background” and the way its technology solved “a real need for banks and credit unions.” LendKey’s white-label, lending-as-a-service model enables banks, credit unions, and alternative lenders to digitize their lending operations with a solution that manages the entire loan cycle. This includes demand generation, online decisioning, loan origination, and customer service. The company’s solutions help lenders conduct programs in private student loans, student loan refinancing, auto loans, and home improvement loans.

Founded in 2007 and headquartered in New York City, LendKey demonstrated its LendKey Marketplace at FinovateSpring 2015. With clients including Navy FCU, McGraw-Hill FCU, and WSFS Bank, LendKey has deployed more than $1.5 billion in capital to borrowers. This spring, LendKey presented its Student Loan Refinance Report, highlighting borrower trends in lending preferences and loan performance. Also this spring, LendKey earned a finalist spot in the 2017 Best of FinXTech Awards, along with fellow Finovate alums Roostify, Moven, and Green Dot.