Digital marketplace for small business loans Lendio has scored $55m in a funding round made of both debt and equity.
Mercato Partners’ Traverse Fund led the $31m equity round, with additional contributions coming from Napier Park Financial Partners, Comcast Ventures, Blumberg Capital, Stereo Capital and Runa Capital.
Signature Bank supplied $24m in the form of a debt facility.
Having raised these new funds, Lendio hopes to increase the ‘scope and precision’ of its loan marketplace, as well as expanding its bookkeeping and lending service functions.
The FinTech utilises machine learning technology to help business owners find the right small business loans within minutes, it claims. With a network of more than 75 lenders, consumers can find better loans to meet their needs.
With the fresh funds, the company will expand its online bookkeeping platform Sunrise which helps small businesses better manage their cash flow and visualize their financial health.
Over the past two years, Lendio has seen an average year-over-year growth rate of 75%.
Mercato Partners Traverse Fund senior investor Ryan Sanders said, “Lendio’s ability to combine data analytics with the human touch to connect small businesses quickly and precisely with ideal lending partners has made all the difference in its success.
“Lendio uniquely solves the problem of inefficient capital for small businesses by bridging lenders and borrowers. They are able to connect both sides and facilitate loans faster and more effectively between small business owners and lending institutions. Lendio’s impressive growth is a result of its technology-backed personalized service which has created a loyal and growing following in the industry.”
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