• Hear how to build a brand from Tina Sharkey, Emily Heyward and Philip Krim at Disrupt – TechCrunch
  • Facebook and Microsoft briefed state officials on election security efforts today – TechCrunch
  • Tesla will remain a public company – TechCrunch
  • Why Learn Digital Marketing?
  • Fortnite’s Android installer shipped with an Epic security flaw – TechCrunch
  • The lobbying is fast and furious as gig companies seek relief from pro-labor Supreme Court ruling – TechCrunch
  • UK phone giant EE hit by another security lapse – TechCrunch
  • Making the Most From Grapevine Communication
  • Alibaba continues to gain cloud momentum – TechCrunch
  • 5 Reasons To Hire A Digital Marketing Agency

Upgrade, the newest lending startup of Lending Club founder Renaud Laplanche, has raised $62 million in Series C funding – TechCrunch

Upgrade, a two-year-old, San Francisco-based consumer lending venture founded by Renaud Laplanche, has raised $62 million in Series C funding led by CreditEase Fintech Investment Fund. The company’s earlier investors also joined the round, including Apoletto, FirstMark Capital, NOAH, Ribbit, Sands Capital, Silicon Valley Bank, Union Square Ventures and Vy Capital. The money brings the total capital that Upgrade has raised to date to $142 million.

It’s easy to appreciate investors’ interest in the company, which already employs 300 people. Since its founding, it says, it has amassed more than 100,000 customers and issued more than $1 billion loans. The average loan size is roughly $10,000.

The company is gaining traction without giving away the store, too. Though the interest rate that it charges compares favorably to average credit card rates of about 18 percent for consumers with good credit, Upgrade still gets away with an APR in the low to mid-teens, charging some customers up to 30 percent interest per year — which is similar to the highest rates on credit cards. Indeed, the minimum credit score that a consumer need have to secure a loan from Upgrade, its minimum is 620, which the credit reporting bureau Experien says falls into the range of subprime borrowers who may be offered less-than-ideal loan terms because of their perceived ability to repay a loan on time.

Yet Upgrade isn’t just making money of potentially risky — and, presumably, many more solid — borrowers. The company also recently introduced a personal credit line that’s a kind of mash-up of an unsecured personal loan and credit card. Borrowers can tap up to $50,000 if, say, they know they’ll need to make a costly home improvement, or (worse) need to pay off other loans. That balance is then converted into an installment loan with a fixed interest rate and a term of up to five years if it isn’t paid off immediately. Those APRs range from 6.46 percent to a whopping 35.9 percent, which might concern someone with a severe aversion to debt, like this editor, but as a business is hard to beat.

Put another way, while the first online lending venture of Laplanche, Lending Club, caters to people who are just beginning to borrow money, Upgrade appears to be focused on a slightly older demographic with more serious lending needs. Asked about this, Laplanche, who was somewhat famously ousted from Lending Club over a governance scandal roughly 18 months after taking the public — he launched Upgrade soon after — says simply that Upgrade building a “mainstream consumer credit brand.”

Its products, he adds, are designed to cater to “broad swaths of the population.”

Source link

The following two tabs change content below.

Sachin Iyer

I am a self‐learned digital executive, leader, strategist and trainer by profession and experience. I have rich experience as marketer, trainer, entrepreneurial evangelist and start up facilitator. I admire first generation of entrepreneurs and conducted more than 200 programs to establish startup ecosystem in Central India. I have worn many hats in my career, as a result, I have a unique ability to manage multi‐disciplinary projects and navigate complex challenges in the process. I have big ideas and I don't care who gets credit, I just like to facilitate. Drop me a line anytime, whether it's a collaboration, writing projects, skills training or just business - will love to hear from you - [email protected]

Latest posts by Sachin Iyer (see all)

  • Hear how to build a brand from Tina Sharkey, Emily Heyward and Philip Krim at Disrupt – TechCrunch - August 25, 2018
  • Facebook and Microsoft briefed state officials on election security efforts today – TechCrunch - August 25, 2018
  • Tesla will remain a public company – TechCrunch - August 25, 2018

Categories: Tech News

Leave A Reply

Your email address will not be published.