Aura, which offers affordable loans to families in the US, has raised $27.7m in residual debt financing from Angel Island Capital.
The capital has been given to help Aura continue its growth and meet demands for its loans.
The company provides US working families which are unable to access affordable loans. It does this by partnering with financial institutions like AIC, letting financial institutions to invest in loans to low-income individuals.
Its cloud-based technology uses algorithms to assess a consumer’s ability to repay a loan, beyond a simple credit score.
Since the company was founded in 2014, it has helped supply $500m in loans to over 400,000 borrowers. Its services are currently available across California, Texas, Illinois and Arizona.
Aura CEO James Gutierrez said, “Aura will use this expansion loan to scale and expand into new markets. Aura has received more than 1 million applications for our loans, and this number grows every day. By partnering with AIC, we can keep up with the demand and help fulfil our mission of providing affordable loans to millions of families in America.”
There has been a total of $26bn has been invested into the global marketplace lending space since 2014, FinTech Global data shows. North America initially had dominance of the market in 2014 with a 50.4 per cent share of the deal activity. However, last year, Asia overtook the region as the most active, representing 38.6 per cent of all deal activity.
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