- Lendable, a Goldman Sachs-backed personal loan startup, will launch an equity financing round.
- Lendable was founded in 2014 and has more than tripled its rating with the new salary increase.
- The UK-based startup is expected to use any new money to expand into the US.
Lendable, a Goldman Sachs-backed finance startup offering personal loans, is in talks to raise new finance which, according to multiple industry sources, could be valued at over Â£ 3 billion ($ 4 billion).
The British startup was founded in 2014 by the 32-year-old German entrepreneur Martin Kissinger, who had previously set up the Berlin-based peer-to-peer company Lendico for the German startup builder Rocket Internet.
It became a unicorn in early 2021 when early investors and employees cashed in around Â£ 30 million in shares in a secondary stock sale. The sale earned the company a valuation of Â£ 1 billion. as reported by Sifted.
A source told Insider that a recent primary stock issue raised the company’s valuation to Â£ 3 billion ($ 4 billion), where it raised approximately Â£ 60 million ($ 80 million). The company has hired consultancy FT Partners to manage its new funding effort, a source familiar with the matter told Insider. The company will likely be rated higher in the new round of funding, two sources said.
The round is not yet over and the final rating number is subject to change. It is not clear how much Lendable plans to raise. Lendable declined to comment.
Lendable says it offers faster loans than the competition
Lendable uses machine learning to automate the process of lending for loans. It acts as a direct lender and claims its approval process is faster than its more established competitors, with funds deposited into the borrower’s account in less than two hours.
It claims to offer quick loans at “fair prices”. An example of a Â£ 7,500 three year loan on their website is calculated at a representative APR of 28.6%, but the interest rate can go as low as 4.9%.
The company targets the low-cost end of the credit market and competes with banks in personal lending. Lendable works with comparison sites and claims that it offers “real prices” that are more transparent than its competitors.
In 2019, Lendable closed a deal with Goldman Sachs Private Capital in which the bank’s investment division committed to buying loans from the fintech.
The startup’s parent company reported total profits of Â£ 26.6 million ($ 35.6 million) on sales of Â£ 36.1 million ($ 48 million) for 2020, nearly double the profit of Â£ 14.9 million ($ 19.9 million) in 2019.
Each new financing is intended to drive the company’s expansion into the United States.
According to Crunchbase, the company has raised around $ 9.8 million in equity to date. Most of the funding came in the form of debt, with the company raising a total of $ 1.3 billion from donors including Goldman Sachs Private Capital, NatWest Markets, and others.
This story has been updated to describe how Lendable works.