Prosper Secures $50 Million Series G Investment

Prosper announced on Thursday it has secured a $50 million Series G investment from an investment fund co-managed by FinEX Asia. The online lender revealed that the investment brings its total equity raised to $410 million to date and it will be used to make strategic investments in the company’s platform and products. While sharing details about the new investment, David Kimball, CEO of Prosper Marketplace, stated:

“This investment is a strong signal of confidence in our business fundamentals and the momentum we are seeing right now. Over the past year, we’ve shown that we can build a sustainable business that continues to redefine the online lending experience for our borrowers and investors. We believe this partnership will open up additional opportunities for our business as we continue to grow.”

Financial Technology Partners (FT Partners) served as financial advisor and Orrick, Herrington & Sutcliffe LLP served as legal advisor to Prosper. Ropes & Gray served as legal advisor to the investment fund. Prosper reported that to date it has facilitated more than $10 billion in consumer loans through its platform. Additionally, the lender has generated $8.6 million of Net Cash from Operating Activities in the second quarter of 2017 driven by an increase in origination volume, improved marketing efficiencies, and lower general and administrative expenses.

As previously reported, Prosper announced $5 billion in backing for their loans at the beginning of the year that helped to steady the platform. The platform recently closed the second securitization from the Prosper Marketplace Issuance Trust, Series 2017-2, “PMIT 2017-2.” Approximately $500 million of notes were issued for PMIT 2017-2 which were said to have priced at tighter levels versus the PMIT 2017-1 transaction that closed in May 2017. The company’s latest Quarterly Report can be found here.

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