In the wake of Prosper’s $5bn loan financing deal, there’s further positive signs for the online lending space.
Millennial-targeted lending platform Upstart has raised $32.5m in its Series D round.
Japanese web giant Rakuten led the round alongside an unnamed US-based asset manager.
The San Carlos-based company’s existing backers Third Point Ventures, Khosla Ventures, and First Round Capital also participated.
Since launching in 2012 Upstart has seen more than 50,000 in loans originated on the platform and claims more than 20% of loans are fully automated.
The company claims to have ‘virtually eliminated’ loan stacking on its platform.
Upstart says it expects to hit cash flow profitability this year and originate more than $1bn over the course of 2017.
It also aims to complete its first loan securitization transaction and unveil new products over the next few months.
The round brings Upstart’s total funding to more than $85m with it previously raising a $35m round led by Third Point in July 2015.
As a result of the new deal Oskar Mielczarek de la Miel, managing partner of the Rakuten FinTech Fund, will join the companies board.
It is also adding Google’s former VP if global advertising finance Sanjay Datta as its CFO.
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