LendingPoint, an Atlanta, Georgia-based fintech startup, today announced it has raised $125 million in new funding led by Warburg Pincus, a New York private equity firm focused on growth investing. LendingPoint said it will use the proceeds to expand its financing solutions for its eCommerce, point of sale, and financial institution partners and further enhance its data and technology platform. LendingPoint has been profitable for two years in a row.
Founded in 2014 by Franck Fatras, Juan Tavares, Tom Burnside, and Victor Pacheco, LendingPoint is a financial technology platform for e-commerce, point of sale, lending institutions, and consumers. By using big data, machine learning, and best-in-class credit algorithms, LendingPoint first set out to provide life-changing financial opportunity for underserved Americans – those establishing new credit profiles, those rebuilding their credit, and the often-overlooked self-employed entrepreneurs. From its first loan in 2015, through December 2020, LendingPoint has originated over $2.5 billion.
Since its inception seven years ago, LendingPoint has originated more than $2 billion in loans and generated more than 3,000 small business and e-commerce partnerships. The company helps consumers realize their financial goals, pay for necessary medical procedures, tackle home improvement projects, and connecting integrated partners with ready-to-purchase consumers.
“We continue to build our platform to provide world-class financing and white label solutions,” said Tom Burnside, CEO & Co-Founder, LendingPoint. “We are thrilled to partner with Warburg Pincus as we continue to make the investments in data science and technology to better serve our customers.”
Juan E. Tavares, Chief Strategy Officer & Co-Founder of LendingPoint continued, “As we refine and extend our product offerings, our new partnership with Warburg Pincus will help us fulfill our goal of creating a new category in financial services.”
Warburg Pincus has invested over $11 billion across the full spectrum of the financial services landscape, including insurance, banking, asset management, specialty finance, payments, and transaction processing. Together with the Warburg Pincus investment, LendingPoint has raised more than $325 million of equity to date.
“LendingPoint’s unique use of data and technology and the best-in-class lending platform has enabled it to scale rapidly by providing financial solutions and superior service to its expanding customer base,” said Eric Friedman, Managing Director, Warburg Pincus. “We believe LendingPoint has substantial opportunities for continued growth and are excited to partner with Tom and his management team to execute on these opportunities, invest in new capabilities, and support their customers.”
The Warburg Pincus investment follows an impressive 2020 for LendingPoint, which ended the year profitable, closed its 10th securitization transaction, launched its SDKn platform, enhanced its point-of-sale merchant platform, and partnered with a leading global eCommerce platform to provide small business capital to their sellers.