LendUp Raises $150 Million for Loans to Financially Underserved
LendUp announced last week that it had raised $150 million in a combination of Series B round financing and an expanded credit facility.
The San Francisco-based company opened in 2012 to provide safe, transparent credit products, online or through mobile phones, for the millions of Americans who are unable to obtain credit through a traditional financial institution. Their payday loan alternative, the LendUp Ladder, is currently available in 23 states. The company also provides financial education courses.
“Over the last two years we’ve been growing rapidly by increasing the number of U.S. states where LendUp loans are available,” CEO Sasha Orloff said. “With this latest round of funding, we’re expanding the platform to include national products that allow us to solve new challenges and meet the needs of more customers.”
This funding comes as LendUp gets ready to expand the reach of its L Card, a credit card launched in beta in 2015. This card is intended for the millions of Americans who are consider “credit invisible,” as many banks are unable to meet their needs.
“If you’re below a 680, a bank can’t loan to you. But 56% of the country is below 680” Orloff told TechCrunch in an interview. “LendUp’s goal is to take people locked out of the banking system and give them a change to build their credit score.”
This round of financing was led by Susa Ventures and Data Collective and included other major investors such as Google Ventures, QED, Kapor Capital, Yuri Milner, SV Angel, Eagle Cliff, Bronze Investments and Victory Park Capital.