Yendo, the creator of the first vehicle-secured credit card, announced that it has closed a significant financing round, totaling $165 million.
This includes $150 million in debt financing led by i80 Group, with an additional $15 million in equity from undisclosed strategic investors.
The funds will be directed towards expanding Yendo’s customer base, developing new products, and extending the company’s offerings nationwide.
The debt financing specifically will support the growth of originations on Yendo’s platform, enabling the company to offer more Americans access to affordable credit rates.
Yendo’s innovative credit card product taps into the equity of a consumer’s vehicle, providing up to $10,000 of revolving credit at prime rates.
This initiative targets millions of Americans who have limited access to traditional financial systems due to their credit scores.
Additionally, the product is available to consumers who refinance their auto loans through Yendo, increasing their credit availability as they pay down their loans.
This funding round comes at a crucial time when traditional bank lending is contracting. According to PitchBook, debt deal volume to venture-backed companies dropped nearly 37% in 2023, marking the slowest year since 2017.
Jordan Miller, CEO and founder of Yendo, expressed optimism about the company’s growth trajectory.
“This round of financing will help us increase the accessibility of affordable credit across the U.S. We have ambitious plans for 2024, and this capital will play a pivotal role in realizing our mission,” Miller stated.
Peter Frank, Managing Director at i80 Group, praised Yendo’s approach to consumer credit. He said:
Yendo’s unique product addresses an underserved market segment, enabling borrowers to access affordable credit through their vehicles. We are eager to support Yendo as they scale their impactful solution
Yendo, which has already saved its customers over $50 million in interest and fees compared to other lending options, currently operates in 40 states.
Following a 700% growth in its business since last year’s Series A round led by FPV Ventures, the company aims to extend its reach and continue its rapid expansion.
