Chicago-based FinTech company OppFi received $50m in a corporate credit facility from Atalaya Capital Management.
OppFi said that it plans to use the proceeds from this credit facility to refinance some of its debts, which could be related to its plans to go public. The company also plans to use some of the facility as growth capital to broaden credit access to consumers who are locked out of mainstream financial options.
Commenting on the funding, OppFi CEO Jared Kaplan said, “Our expanded relationship with Atalaya Capital Management not only further validates the strength of our mission-driven business model, but also illustrates our commitment to helping millions of everyday consumers gain access to simple and affordable financial products.
“We see a great opportunity for OppFi to be the financial champion for the nearly 60 million everyday consumers as we continue to innovate our array of products, technology and capabilities in the years ahead.”
OppFi’s platform helps lenders provide loans to people who wouldn’t normally qualify for a loan. Financial institutions tend to base their lending decisions on credit scores and credit histories, which sometimes disqualifies marginalised people. By using its AI technology to check for other forms of creditworthiness, OppFi aims to help provide loans to people without the need for predatory lending practices.
So far, OppFi has helped issue over 1.5 million loans, it claimed. Given that approximately 60 million consumers lack access to mainstream financial products in the US, the sector is ripe for innovation, it said.
Last month, OppFi announced that it was taking the steps to become a publicly-traded company through a SPAC merger with Joe Moglia’s FG New America Acquisition Corp.
In December last year, OppFi launched Salary Tap, which helps people repay loans through automatic salary deductions. The company is also working on its own credit card product, the OppFi card, which is expected to launch later this year.
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