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Lendio secured $55 million in Series E round of financing. The Investments will support the development of its next-generation loan marketplace, expansion of the divisions such as bookkeeping and lender services
FREMONT, CA: The nation's most renowned marketplace for small business loans, Lendio secured $55 million in Series E round of financing, of which $31 million in equity led by Mercato Partners' Traverse Fund and a $24 million debt facility from Signature Bank. The existing investors, including Napier Park Financial Partners, Comcast Ventures, Blumberg Capital, Stereo Capital, and Runa Capital, oversubscribed the funding round. The funds collected from the funding round will enable Lendio to focus on increasing the scope and precision of its loan marketplace along with the expansion of new bookkeeping and lender services functions.
"Lendio's ability to combine data analytics with the human touch to connect small businesses quickly and precisely with ideal lending partners has made all the difference in its success," said Ryan Sanders, a senior investor at Mercato Partners Traverse Fund. "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."
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"This $55 million round is a significant milestone in Lendio's mission to fuel the American dream as a financial matchmaker that brings high-tech, high-touch capital to the small business economy," said Brock Blake, CEO, and co-founder of Lendio. "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."
The investment will enable the company to expand its online bookkeeping platform, Sunrise. Hundreds of small business owners can leverage Sunrise to manage their cash flow and better understand their financial health. By integrating it's Sunrise bookkeeping and loan marketplace platforms, Lendio can proactively fulfill the needs of this growing number of business owners.
Additionally, Lendio will also tap into the collected funding for enhancements in its lender services division. Based on a software-as-a-service (SaaS) partnership model, the lender services division provides banks, online lenders, and credit unions enhanced access to a custom, white-labeled online application that enables the financial institution to accept loan online. Lenders are also now outsourcing the customer-facing sales function to Lendio, harnessing its knowledge of loan products and small business needs, along with the ability to increase customer conversion rates.
Over the last two years, Lendio's year-over-year growth rate is averaged to be 75 percent. The company has developed to be the largest small business financing marketplace in U.S. It facilitates more than 100,000 loans totaling $2 billion, through a combination of several leading technology, data science, and personalized expert guidance.
See also: Top Fintech Solution Companies
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