FinTech: Warburg Pincus Invests $125M Preferred Equity In LendingPoint

January 14, 2021 | FinTech, News, Private Equity
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LendingPoint has originated over $2.5 billion in loans up to December 2020.

Fintech and loan originating platform LendingPoint today announced an investment by Warburg Pincus of $125 million in preferred equity. With this financing, the fintech has raised over $325 million equity to date. Warburg Pincus is a leading global private equity firm focused on growth investing. (BusinessWire)

LendingPoint

Atlanta-based Lending Point offers personal loans and financing options up to $25,000. It acts as a bridge between its eCommerce and point of sale partners, its lending institutions, and consumers.

It uses data, technology, and a scalable platform to deliver installment loan options to consumers and small business owners.  These entities may have requested financial solutions either directly or through merchant partnerships and integrated eCommerce platforms.

The platform originated its first loan in 2015. Till December 2020, it had chalked up loan origination of an aggregate of $2.5 billion.

Use of funds

LendingPoint will use the latest funding to further improve its data and technology platform.

It also intends to grow its financing solutions for its eCommerce, point of sale, and financial institution partners.

“We continue to build our platform to provide world-class financing and white label solutions,” said Tom Burnside, CEO & Co-Founder, LendingPoint, in a statement.

In 2020, LendingPoint turned profitable.

In October, it closed its first revolving and largest ever consumer loan ABS issuance through the issue of $328.5 million of notes backed by a pool of $365 million of direct-to-consumer loans that originated on its platform.

“LendingPoint’s unique use of data and technology and the best-in-class lending platform has enabled it to scale rapidly by providing financial solutions and superior service to its expanding customer base,” said Eric Friedman, Managing Director, Warburg Pincus. “We believe LendingPoint has substantial opportunities for continued growth.”

Related Story:   Digital Lending Platform LendUp Notches Up $2B in Loans

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