Online loan platform LendingPoint has secured a $125m preferred equity investment from private equity firm Warburg Pincus.
With the fresh funds, the FinTech plans to expand its financing solutions for its e-commerce, point of sale and financial institution partners, as well as enhance its data and technology platform.
The FinTech leverages data, technology and a scalable platform to offer instalment loan options to consumers and small business owners. Its fraud prevention, risk and asset management algorithms help to offer loans to people across the credit spectrum.
Since the platform launched in 2015, it has originated more than $2.5bn.
This investment comes after strong growth in 2020 for LendingPoint, which saw it end the year profitable, close its tenth securitisation transaction, launch new services and partner with more companies.
Warburg Pincus said Eric Friedman, Managing Director, “LendingPoint’s unique use of data and technology and best-in-class lending platform has enabled it to scale rapidly by providing financial solutions and superior service to its expanding customer base.
“We believe LendingPoint has substantial opportunities for continued growth and are excited to partner with Tom and his management team to execute on these opportunities, invest in new capabilities, and support their customers.”
Rothschild & Co acted as the exclusive financial advisor to LendingPoint.
The FinTech previously secured a $250m credit facility from Guggenheim Securities. These funds were used to increase the size of its loans.
Warburg Pincus has made a number of FinTech investments in the past. Last year, the company deployed $400m into WEX, which builds simplified payment systems for businesses.
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