Loanable in talks to raise funds above £3bn

  • Lendable, a personal loan startup backed by Goldman Sachs, is set to raise a funding round.
  • Founded in 2014, Lendable could more than triple its valuation with the new raise.
  • 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 £3 billion ($4 billion), according to multiple industry sources.

The UK-based startup was founded in 2014 by 32-year-old German entrepreneur Martin Kissinger, who previously set up Berlin-based peer-to-peer company Lendico for German startup builder Rocket Internet.

It became a unicorn earlier in 2021, when early investors and employees cashed in around £30million in shares in a secondary share sale. The sale gave the company a valuation of £1 billion, as reported by Sifted.

A source told Insider that a more recent primary share issue bumped the company’s valuation to £3bn ($4bn), where it raised around £60m ($80m). millions of dollars). The company has appointed consultancy FT Partners to manage its new funding 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 cycle is not finalized and the final valuation figure could change. It is unclear how much Lendable expects to raise. Lendable declined to comment.

Lendable says it offers fast loans faster than competitors

Lendable uses machine learning to automate credit underwriting for loans. It acts as a direct lender and claims that its approval process is faster than its more established peers, with funds disbursed to a lender’s account in less than two hours.

It claims to offer fast loans at “fair rates”. An example loan of £7,500 over three years on its site is charged at a representative APR of 28.6%, but rates can drop as low as 4.9%.

The company targets the low cost part of the loan market and competes with banks on personal loans. Lendable works with comparison sites and claims to offer more transparent “actual pricing” 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 £26.6 million ($35.6 million) on £36.1 million ($48 million) in revenue for 2020, nearly doubling the £14.9 million ($19.9 million) profit recorded in 2019.

Any new funding should fuel the company’s expansion into the United States.

The company has raised approximately $9.8 million in equity funding to date, according to Crunchbase. The bulk of its funding has been in the form of debt, with the company raising a total of $1.3 billion from backers including Goldman Sachs Private Capital, NatWest Markets and others.

This story has been updated to describe how Lendable works.

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