LendKey raises $13m in equity and debt financing
Lending-as-a-Service (LaaS) specialist LendKey raised $13 million in Series C funding this week, reports Finovate (Banking Technology’s sister company).
The round consisted of both equity and debt financing ($8 million of the former, $5 million of the latter) and was led by Maine-based North Atlantic Capital. Also participating in the investment were existing investors DFJ, Gotham Ventures, TTV Capital, and Updata Partners.
“Traditional financial institutions are now more than ever adapting to evolving customer needs to remain competitive and better reach millennials,” LendKey CEO and founder Vince Passione says.
This week’s investment boosts LendKey’s total capital to more than $27 million. Passione says the financing will help the company “meet the strong bank and credit union demand” for its services. LendKey plans to expand its regional office in Cincinnati, Ohio, as well as add talent in account development and sales.
North Atlantic Capital MD Mark Morrissette praises LendKey’s “impressive industry knowledge and background” and the way its technology solved “a real need for banks and credit unions”.
LendKey’s white-label, LaaS model enables banks, credit unions, and alternative lenders to digitise their lending operations with a solution that manages the entire loan cycle. This includes demand generation, online decisioning, loan origination, and customer service. The company’s solutions help lenders conduct programmes in private student loans, student loan refinancing, auto loans, and home improvement loans.
Founded in 2007 and headquartered in New York, LendKey demonstrated its LendKey Marketplace at FinovateSpring 2015. With clients including Navy FCU, McGraw-Hill FCU, and WSFS Bank, LendKey has deployed more than $1.5 billion in capital to borrowers.
