U.S.-based online lending platform Lendio recently announced it secured $55 million through its Series E funding round, which reportedly included $31 million in equity led by Mercato Partners’ Traverse Fund and a $24 million debt facility from Signature Bank. The equity round was oversubscribed by existing investors such as Napier Park Financial Partners, Comcast Ventures, Blumberg Capital, Stereo Capital, and Runa Capital.
Founded in 2011, Lendio claims to be a free online that helps business owners find the right small business loans within minutes. The online lender revealed it has facilitated more than 100,000 loans totaling $2 billion through a combination of leading technology, data science, and personalized expert guidance. Speaking about the investment, Brock Blake, CEO and Co-Founder of Lendio, stated:
“With these funds, we are strongly positioned to grow our existing platform as a trusted loan facilitator that supports both lenders and borrowers, while building out a range of new integrated lending services that get the right loans into the right hands at the right time. We are grateful for the continued support and trust of our investors who believe in our growth strategy.”
Ryan Sanders, senior investor at Mercato Partners Traverse Fund, further commented:
“Lendio uniquely solves the problem of inefficient capital for small businesses by bridging lenders and borrowers. They are able to connect both sides and facilitate loans faster and more effectively between small business owners and lending institutions. Lendio’s impressive growth is a result of its technology-backed personalized service which has created a loyal and growing following in the industry.”
Lendio added that the investment will allow it to expand its online bookkeeping platform, Sunrise by Lendio and will also be used to enhance across its lender services division.
“Based on a software-as-a-service (SaaS) partnership model, the lender services division provides banks, credit unions and online lenders access to a custom, white-labeled online application that allows the financial institution to accept loan applications online. In addition, lenders are now outsourcing the customer-facing sales function to Lendio, harnessing Lendio’s knowledge of loan products and small business needs, as well as its ability to increase customer conversion rates.”
