Prosper, a peer-to-peer lending company that connects borrowers and investors with over $17B in loans issued via its platform, recently shared their performance data from the Prosper Portfolio for the month of February 2021.
Key highlights from the report are as follows:
- In February 2021, around 81% of originations had been rated AA-B which is slightly lower than in the previous month.
- The average loan size last month stood at ~13k, and the average borrower income stood at ~108k in February, “remaining relatively flat month-over-month.”
- The weighted average borrower rate for the month of February originations “increased 20 bps month-over-month, driven by a higher mix of C-HR rated loan originations.”
The Prosper team explained that their Performance Updates are intended to help its investor community with gaining a better understanding of key performance trends. The updates also aim to offer useful insights into the emerging trends they are seeing and the information required to make strategic investments via Prosper.
The Prosper team has also shared money management tips.
Prosper says that it’s important to have a “positive money mindset” because it could help lower our stress levels while improving our overall well-being. The platform’s management explained that it can be the initial step to becoming “financially secure.” Creating a “healthy mindset” begins when you establish goals, develop good financial management habits and clearly define “where you want to go financially.”
As reported in December 2020, Prosper had shared its performance data from the Prosper Portfolio for November 2020.
The company had revealed at that time that around 84% of originations were “rated AA-B compared to 86% in the prior month.” They had also noted that the weighted average annual income of platform borrowers last month was $105K, “remaining relatively flat year-over-year.”
Prosper also mentioned that the weighted average borrower rate for November 2020 originations “increased by 30 bps month-over-month, due to a higher mix of B-HR rated loan originations over the period.”
As reported in May 2020, Prosper Marketplace filed its first-quarter report on operations and the document provided insight into how the marketplace lender was faring during an economic landscape impacted by the Coronavirus.
Overall, Prosper had originated $17.1 billion since platform inception through March 31, 2020. For the three months ended March 31st, the marketplace lending platform had originated $449 million in loans – a 25% decrease from the same period year prior. The percentage of loans funded through Prosper’s whole loan channel during Q1 was 91%.
The decline in loan originations has naturally led to a decrease in transaction fees so net revenue had dropped dramatically (as of May 2020).
Of note, Prosper received $8.4 million under the Paycheck Protection Program (as of May 2020), part of the CARES Act, to cover payroll, rent etc. The company had also instituted temporary salary reductions and suspended certain benefits.
Prosper closed on a $50 million funding round at a $550 million valuation back in September 2017 (these valuations may now have changed significantly).