Auto loan provider Finova Financial has bagged a $102.5m equity and credit facility.
The financing was led by CoVenture and also saw commitments from previous investors from the company’s $52m Seed round last year.
Finova Financial is an online lending platform which helps to provide borrowers access to capital by using their car as security. The platform offers loans on a 12-month term, with a maximum APR of 30 per cent.
Founded in 2015, the company also has a prepaid card, which users are able to transfer funds to, for safe purchasing and bill payments. The card also helps the user get quick access to loans.
This wave of capital will be used to help the company to expand its services and change the banking future.
Finova Financial CEO Gregory Keough said, ?70 million Americans spend $141 billion on alternative financial services a year because they dont have or want a relationship with traditional banks or financial institutions. This rapidly growing group feels that traditional financial services companies cant solve their core financial needs.
?Finova is using advanced technologies and designing innovative new financial products to serve the needs of this large and growing population. Finova proprietary platform delivers an all-digital financial product and experience that fits the lifestyle of the 28% of Americans??and growing??outside the formal financial system.p>
Last year the company raised a $52m financing round from investors including 500 Startups, MHS Capital, Refactor Capital and Metamorphic Venture, among others. CoVenture also provided a credit facility to the company.
Earlier this year, CoVenture deployed $70m of debt to farming-focused lending platform ProducePay, as well as leading its $7m funding round.
The marketplace lending sector has seen a decline in the number of deals for the past five quarters; however, Q3 2017 has seen the least amount of deals but the most funding in this period.
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