Prosper surpasses $2 billion of loans

The world’s second largest peer-to-peer lending platform is closing the gap on the market leader.

Prosper Marketplace has just reached the $2 billion milestone in terms of cumulative loans originated. This comes a breath-taking 6 months after it passed the $1 billion mark back in April. Prosper has originated $1.2 billion loans thus far in 2014, aptly illustrating the rapidity of the platform’s growth.

Aaron Vermut, CEO of Prosper commented that:

“It took us eight years to reach the first billion in loans on our platform, and just six months to reach the second billion. As Prosper continues on this path of rapid growth, we are focused on investing in our people, products, and in building out a world-class customer service team to ensure the best possible experience on our platform.”

Prosper is one of the largest peer-to-peer lenders in the US and was recently named at number 13 on the list of 100 Fastest Growing Private Companies in the Bay Area by the San Francisco Business Times. The growth has been driven in part by a number of key figures that have recently joined the team. These include a new CFO, CMO, and head of business development and HR. The team has grown to over 200 people. The company has also expanded by opening offices in Phoenix, Arizona and is about to move its San Francisco headquarters to a larger space. 

The US peer-to-peer market is booming. Once the Lending Club IPO is done and dusted, attentions will naturally turn to Prosper and whether or not, and when, the ascendant platform will follow suit.

It is interesting to set Prosper’s $2bn milestone against a back-drop of the growth of the UK industry.  Zopa, the world’s first peer-to-peer platform, emerged in the UK in March 2005. Since then the UK consumer peer-to-peer lending segment has grown to $1.67bn. Of that Zopa, has lent $1.05bn.  Meanwhile, from a start in Q4 2005, Prosper has already reached the $2bn mark.   This growth has been fuelled by significant institutional participation in contrast to the UK where institutions are only just beginning to play a meaningful role.