Loanable in talks to raise funds above £ 3bn valuation: sources
- Lendable, a personal loan startup backed by Goldman Sachs, is about to raise a fundraiser.
- Founded in 2014, Lendable could more than triple its valuation with this further increase.
- The UK-based startup is expected to use any new money to expand in the US.
Lendable, a Goldman Sachs-backed financial startup that offers personal loans, is in talks to raise new funding that could value the company at more than Â£ 3 billion ($ 4 billion), according to several industry sources.
The UK-based startup was founded in 2014 by German entrepreneur Martin Kissinger, 32, who previously founded Berlin-based peer-to-peer company Lendico for German startup builder Rocket Internet.
He became a unicorn earlier in 2021, when early investors and employees cashed in around Â£ 30million in stock from a secondary stock sale. The sale gave the company a valuation of Â£ 1 billion, as reported by Sifted.
A source told Insider that a more recent principal share issue raised the company’s valuation to Â£ 3bn ($ 4bn) where it raised around Â£ 60m ($ 80m) ). The company has appointed consultancy firm FT Partners to manage its new fundraising effort, a source with knowledge of the matter told Insider. The new funding round will likely see the company valued more than that, two sources said.
The round is not finalized and the final valuation number may change. It’s unclear how much Lendable plans to raise. Lendable declined to comment.
Lendable Says It Offers Quick Loans Faster Than Competitors
Lendable uses machine learning to automate credit underwriting for loans. It acts as a direct lender and claims its approval process is faster than its more established peers, with funds being paid into the lender’s account in under two hours.
It claims to offer quick loans at “fair rates”. A sample three-year Â£ 7,500 loan on his site is billed at a representative APR of 28.6%, but rates can drop as low as 4.9%.
The company targets the low cost loan segment and competes with banks for personal loans. Lendable works with comparison sites and claims to offer more transparent âreal pricesâ than its competitors.
In 2019, Lendable struck a deal with Goldman Sachs Private Capital that saw the bank’s investment division commit to buying loans issued by the fintech.
The startup’s parent company reported overall profits of Â£ 26.6million ($ 35.6million) on Â£ 36.1million ($ 48million) in revenue for 2020, nearly double the of the Â£ 14.9million ($ 19.9million) profit recorded in 2019.
Any new funding is expected to fuel the company’s expansion into the United States.
The company has raised around $ 9.8 million in equity to date, according to Crunchbase. Most of its funding has been in the form of debt, with the company raising a total of $ 1.3 billion from funders such as Goldman Sachs Private Capital, NatWest Markets and others.
This story has been updated to describe how Lendable works.