Utah-based Lendio, an online marketplace for small business loans, raises $55 million


Lendio, a free online marketplace for small business loans based in Lehi, Utah, has secured $55 million in funding. This includes $31 million in equity led by Mercato partner Traverse Fund and a $24 million credit facility from signature bank.

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According to the company, the equity round was oversubscribed by existing investors, among others Financial partner of Napier Park, Comcast Ventures, Capital Blumberg, stereo capital and Runa capital. It brings Lendio’s raised overall since inception in 2011 to $108.5 million. The company’s most recent funding was $19 million Series Dwhich was raised in October 2016 with a pre-money valuation of $75 million, according to Cruchbase data.

Lendio plans to use the new capital “to increase the scope and granularity” of its lending marketplace while expanding new accounting and lender service capabilities.

The startup offers 75 lending products and describes itself as a one-stop shop for business owners looking for capital to start, operate and grow. To date, Lendio has provided more than 100,000 loans totaling over $2 billion to nearly 35,000 business owners across the United States. The annual growth rate has averaged 75 percent over the past two years. According to the CEO and co-founder, the company has more than doubled its customer base in the last two years Rock Blake.

It has also nearly doubled its workforce from 170 employees about a year ago to just over 300 today.

According to Blake, Lendio has reduced its monthly burn rate to break even since the Series D funding round began in 2016.

“While the company has been profitable and did not have to raise funds, this Series E round will allow Lendio to grow several recently launched business units,” he wrote via email.

what it does

The company wants to make it easier for small business owners to access credit. Owners can complete a 15-minute online loan application, which is processed by Lendio’s machine learning algorithms and matched against “a pool of eligible lenders.”

Lendio’s credit team reviews these options with business owners and then works to make the loans possible, often within 24 hours, it claims.

The company maintains strategic partnerships with companies such as American Express, Heartland Payment Systems, paypal, Lending Club, cabbage, nerd walletcomcast Business, staples and support group.

For senior investors from Mercato Partners Ryan SandersLendio’s “ability to combine data analytics with the human touch to quickly and accurately connect small businesses to ideal lending partners has been the key difference to his success.”

The new capital will be used in part to expand the company’s online accounting platform and further integrate it with its Sunrise by Lendio lending marketplace platform. It also plans to expand its Lender Services business. The Company provides access to its white-label online application to banks, credit unions and other online lenders through a software-as-a-service partnership model.

Meanwhile, lenders are outsourcing the customer-facing sales function to Lendio, the company said.

The company also has a social component (which I always love). For every new loan brokered on Lendio’s marketplace platform, Lendio Gives – an employee contribution and employer matching program – makes a microloan available to a low-income entrepreneur around the world Kiva.org.

Blake said Utah is an obvious choice to start a fintech company.

“Regulatory-wise, Utah is very business-friendly, the cost of living is affordable, and there’s a great talent pool to draw from,” he said. He also appreciated “the strong VC community and pervasive corporate culture across the state.”

Illustration: Li Anne Dias

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