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

January 14, 2021 | FinTech, News, Private Equity
https://dailyalts.com/wp-content/uploads/2021/01/lpwallsign.jpg

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

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/10/marijuana-g4237088f5_640.jpg
FinTech: AeroPay And Jane Tie-Up To Offer Online Payments For Cannabis
October 15, 2021     FinTech, News

AeroPay and Jane Technologies announced Thursday a partnership to enable online payments via AeroPay across 36 U.S. state markets where cannabis is legal. More than 2,100 dispensaries and 300 companies…

https://dailyalts.com/wp-content/uploads/2021/10/bitcoin-81652-md.jpg
Digital Assets: BoE Official Likens Crypto To Subprime, Warns Of 2008-Like Crash
October 15, 2021     Digital Assets, News, Regulations

In a speech on Wednesday, Jon Cunliffe of the Bank of England called for tough regulations on cryptocurrencies, drawing a parallel between the $1.2 trillion subprime mortgage market in 2008…

https://dailyalts.com/wp-content/uploads/2021/10/nexon-10000-vehicle-big.jpg
Venture Capital: TPG Rise Climate And ADQ To Invest $1B In Indian Group Tatas’ EV Unit
October 15, 2021     ESG and Sustainability, News, Venture Capital

Tata Motors (NSE: TATAMOTORS), the automobile company of the Tatas, the Indian salt-to-airlines business conglomerate, will receive an investment of approximately $1 billion from TPG’s Rise Climate Fund and Abu…

https://dailyalts.com/wp-content/uploads/2021/10/BTC-Price-Chart-0427pm.jpg
Alternative Investments/Digital: Bitcoin Spikes In Anticipation Of SEC’s Clearance Of Bitcoin ETF
October 15, 2021     Alternative Investments, Digital Assets, News

Bitcoin, the leading cryptocurrency, is within handshaking distance of its April all-time high of $64,895 after spiking over the last 24 hours on rising market expectations of an imminent SEC…