UK-based ethical lender Plend has reportedly raised £40m in a seed funding round, as it looks to put an end to financial exclusion.
The investment was support by Active Partners, Velocity Juice, Sivo and the founders from Monzo, Starling Bank and Oodle Car Finance, according to a report from FF News. Other commitments came from existing backers Ascension, Tomahawk VC, DD Venture Capital and Haatch.
Plend’s mission is to rebuild the credit system, which it believes discriminates applications based on their historic and limited data, rather than assessing what they can really afford.
Since its launch in July 2022, it has already processed over £40m loan applications and its loan book is increasing by 20% month-over-month. The company is planning to more than double its lending output by the end of the year.
The company offers affordable loans ranging from £1,000 to £10,000, with up to 25% APR.
Plend CEO and co-founder Rob Pasco said, “This new round of funding caps off an amazing year for Plend. Since launching our first affordable credit product to consumers this year, we have been able to help so many people get access to the money they need to get on with their lives at affordable and fair rates.
“We are thrilled to be working with our newest investment partners to provide a truly ethical alternative to the broken credit scoring system that locks so many people out of the market, especially during these times of economic turbulence and rising interest rates.”
In other lending news, Haven raised $8m for its Series A funding round. The company is a homeownership platform that helps unlock value for mortgage servicers and subservicers.
Zest AI also collected funds this week. It raised $50m in a growth round co-led by Insight Partners and CMFG Ventures. The company helps automate underwriting.
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