San Francisco-based LendUp has received an undisclosed investment from digital payments giant PayPal.
The company is an online lender that helps Americans unable to get finance from traditional banks due to poor credit or income viability. Offerings from the company include a loan of up to $250 for 30 days, credit cards to help improve credit ratings and free online education courses to boost financial knowledge.
LendUp co-founder and CEO Sasha Orloff said, “PayPal has long been considered at the forefront of FinTech innovation, reinventing payments for the modern world. They’ve since built one of the most successful FinTech companies of all time.
“We share a common vision of how technology can democratize industries, and that’s exactly what LendUp is doing. We’re building our own technology to create new financial products and experiences for the 56 percent of Americans shut out of mainstream banking due to poor credit or income volatility—right on a mobile phone.”
Following the deal, former Metromile CFO Carrie Dolan has joined the company as a board advisor. Alongside this, LendUp has promoted Vijesh Lyer to COO, having joined the company in 2015 after 15 years working at Capital One and Paypal.
In total funding the company has raised at least $361.5m since 2013, with a $100m debt financing from Victory Park Capital coming earlier this year. LendUp picked up $47.5m in its Series C led by Y Combinator last year.
Last year the company had to pay a $3.6m fine for violation of payday and instalment laws.
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