A daily newsletter summarizing recent activity & interesting start-ups globally

RECENT NOTABLE ACTIVITY – ALTERNATIVE LENDING

  • Klarna, a Stockholm, Sweden-based buy now pay later option and installment credit provider for e-commerce purchases, receives a full banking license. Link
  • Marlette Funding, a Wilmington, US-based online consumer lending platform, closes a $369M securitization of its brand BestEgg’s unsecured personal loan portfolio. Link
  • Dashu Finance, a Shenzhen, China-based unsecured loan platform, raises a RMB 800M ($117M) Series C round led by PAG and Primavera, with participation from Sequoia Capital China and China Everbright. Link
  • TRINE, a Gothenburg, Sweden-based crowdinvesting platform for solar projects, raises €6M ($6.85M) in a Series A round led by Gullspång Invest with participation from angels Andrew Reicher and Lars Thunel. Link
  • Patch of Land, a Los Angeles-based real estate crowdfunding platform, expands its warehouse debt facility with SFCapital from $10M to $30M. Link
  • LoanTap, a Mumbai-based online consumer lending startup, secures $4M in debt and equity financing from Kae Capital, India Quotient, IFMR and MAS Finance along with other angel investors. Link
  • Singapore-based SME lending platform Validus receives $3M from Vertex Ventures and an additional $600K from angel investors for expansion to new SEA markets. Link
  • Kissht, a Mumbai, India-based consumer loans provider for e-commerce purchases, raises $2M from Endiya Partners and Ventureast. Link
  • CredoLab, a Singapore based alternative credit scoring startup, raises over $1M in a Pre-Series A round led by Fintonia Group with participation from Reliance Modal Ventura and other investors. Link
  • Billion Loans, a Bangalore-based P2P consumer and business loans platform, raises a $1M (around INR 7 crore) seed round from Reliance Capital arm. Link
  • AutoGravity, an Irvine, Texas-based online auto loans origination platform, receives an undisclosed equity investment from VW Credit. The investor joins the platform as a captive lender, and plans to create own branded online financing mobile app using AutoGravity’s technology. Link
  • LendUp, a San Francisco-based payday and installment credit provider, receives an undisclosed strategic investment from PayPal. Link
  • LendingOne, a Boca Raton, US-based online lending platform for real estate investors, closes a Series A round from investors Ron Suber, Richard Vague, Sidney Brown and Michael Heller. Link
  • RentTrack, a Minnetonka, US-based online rent payments and rent reporting company, closes a Series A round led by Yabeo for expansion to Canada and the UK. Link
  • London-based SME lender iwoca receives an undisclosed investment from Intesa Sanpaolo. Link
  • Upgrade, a San Francisco-based online platform for personal loans founded by Lending Club founder Laplanche, partners with reporting and analytics platform dv01,unde which investors will receive free access to the platform, including use of dv01’s Portfolio Management solution. Link

SOME INTERESTING STARTUPS FOUND

Kue (2016, London) – A provider of installment-based payment options to a target market of consumers setting up their homes. The customers can go to any store and buy furniture, electronics etc in monthly EMI plans. The customers can choose payment terms which fit their budget. The financing is mobile-app based.
BridgeCare Finance (2016, Seattle) – A platform providing easy funding for a largely untouched domain of accessing child care financing. The platform allows to select the childcare provider of one’s choice and pays full amount directly to the provider. The customer needs to repay in monthly installments to BridgeCare Finance.

LEADER BOARD – ALTERNATIVE LENDING

Consumer Loans
Lending Club (2007, SF, IPO) – P2P online lending marketplace. Backed by Canaan Partners, Norwest Venture Partners, Morgenthaler Ventures, Foundation Capital. Went public in 2014.
SoFi (2011, SF, $2.12B) – Marketplace lender and provider of student loan refinancing. Backed by Morgan Stanley, SoftBank, Third Point Ventures, Renren, Discovery Capital, Baseline Ventures, QED Investors.
Prosper (2005, SF, $353M) – P2P lending marketplace. Backed by Credit Suisse, Sequoia Capital, Francisco Partners, Draper Fisher Jurvetson.
Avant (2012, Chicago, $655M) – Online lending platform. Backed by Tiger Global Management, Victory Park Capital, August Capital.
Affirm (2012, SF, $420M) – Provides instant point-of-sale financing for online purchases. Backed by Spark Capital, Andreessen Horowitz, Khosla Ventures, Lightspeed Venture Partners.
GreenSky (2006, Atlanta, $410M) – A consumer finance marketplace, specializing in providing support services for consumer credit in the home improvement, retail, and healthcare industries. Backed by QED Investors, TPG, Fifth Third Bancorp.
Klarna (2005, Stockholm, $335.8M) – Platform providing e-commerce payment solutions for merchants and shoppers. Backed by General Atlantic, Sequoia Capital, QED Investors, DST Global.

Business Loans
OnDeck (2007, NY, IPO) – Technology-enabled financial platform that provides loans to small and medium-sized businesses. Backed by Tiger Global Management, Google Ventures, RRE Ventures. Went public in 2014.
IOU Financial (2006, Kennesaw, IPO) – Working capital loan provider to small businesses. Went public in 2014.
Funding Circle (2010, London, $375M) – P2P marketplace for business loans. Backed by Accel Partners, Index Ventures, Union Square Ventures, DST Global, Temasek, Ribbit Capital, Baillie Gifford, Rocket Internet, Sands Capital, Montage Ventures, Endurance Companies.
Kabbage (2009, Atlanta, $241M) – Provider of working capital loans for small businesses. Backed by Reverence Capital Partners, SoftBank Capital, Mohr Davidow Ventures, BlueRun Ventures.
Behalf (2011, NY, $156M) – Lending platform which offers financing for small businesses. Backed by Sequoia Capital, Viola Group, Spark Capital, Vintage Partners, Western Technology Investment, Victory Park Capital, MissionOG, Maverick Ventures.
BlueVine (2013, Redwood City, $113M) – An online invice factoring company. Backed by Lightspeed Venture Partners, Menlo Ventures, 83North, and Citi Ventures.
AbleLending (2014, Texas, $111M) – A collaborative lending platform for small businesses. Backed by Community Investment Management.
LendingHome (2013, SF, $109M) – Online mortgage marketplace for real estate loan. Backed by Foundation Capital, Renren, Ribbit Capital.
Fundbox (2012, SF, $107.5M) –  An invoice discounting service provider.Backed by Spark Capital, General Catalyst Partners, Khosla Ventures.

Enablers
Think Finance (2001, Fort Worth, $60M) – Analytics and technology services for lenders. Backed by Sequoia Capital, TCV, Victory Park Capital.
Zest Finance (2009, LA, $54M) – Deploys machine learning to provide lenders with borrowers’ credit score. Backed by Lightspeed Venture Partners, Matrix Partners, Kensington Capital, Northgate Capital, Baidu.
FactorTrust (2006, Atlanta, $43.6M) – Provider of consumer data, analytics and risk scoring solutions on those underserved by traditional banking channels. Backed by  ABS Capital Partners, MissionOG, Archbrook.
Insikt (2012, SF, $24M) – White label platform for online lending. Backed by Accelerator Ventures, Investment AB Kinnevik, FirstMark Capital, Atalaya Capital.

Investment Platforms
Orchard (2013, NYC, $45M) – An investment and analytics platform that supports the lending marketplaces by providing technical and operational efficiency to help institutional investors and loan originators connect and transact. Backed by Canaan Partners, Spark Capital, QED Investors, Thrive Capital, Thomvest Ventures, Victory Park Capital, Conversion Capital, Tom Glocer, Brooklyn Bridge Ventures, Nyca Partners, Social Leverage.

Leader board includes all the top funded, IPO and successfully running bootstrapped companies along with their location, founding year and funding amount.

For the latest update, visit Alternative Lending feed.

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