Peer to Peer (P2P) lending platform continues to rack up big numbers as they shove banks aside and stake their claim in the P2P crowdfunding world. One month after hurdling past the $1 billion mark in total loans in a note from Prosper CEO Aaron Vermut, Prosper stated they originated a record $100 million in loans for the month of April. This would appear to show pretty impressive trajectory as lending velocity grows. The number represents a 400% increase from a year ago and a month over month rate of 30% growth. It is safe to say Prospers rate of growth is pretty spectacular and the company indicates they have taken 35% of the consumer P2P lending market. When you look at traditional bank offerings and usurious credit card rates their equation for success becomes pretty clear. More and more people are turn gin to P2P loans to fund large purchases, start small businesses or refinance high interest rate debt.
“To accomplish that goal, we have been hiring the right team members, streamlining operations and improving our technology infrastructure to continually deliver a faster and more transparent borrowing and investing experience. I look forward to sharing a number of enhancements to member communications, mobile functionality and member benefits along with profiles of several new members of the Prosper team in the coming months.”
Prosper recently boosted their executive bench by hiring Macy Lee as their new Chief Financial Officer. Lee was most recently CFO of eBay Australia.
Prosper recently announced it has raised $70 million in additional funding to fuel the company’s growth and expansion. The round was led by Francisco Partners, a leading global private equity firm focused exclusively on investments in technology and technology-enabled services businesses. David Golob from Francisco Partners will join the Prosper Marketplace Board of Directors. The funding round also includes investments from Institutional Venture Partners (IVP), one of the premier later-stage venture capital and growth equity firms, as well as Phenomen Ventures.
“We are thrilled to welcome Francisco Partners, IVP, and Phenomen Ventures as equity investors in Prosper Marketplace,” said Aaron Vermut, CEO, Prosper Marketplace. “We have had an incredible year so far, and have grown monthly platform originations from $9 million in January 2013 to over $100 million in April. Last month Prosper crossed $1 billion in total loans originated on the platform, and Prosper plans to hit $2 billion in cumulative loans this year. Financially, Prosper Marketplace is in a very solid place and this capital will be used to expand the business, advance our technology, and hire the very best talent.”