Prosper Marketplace has acquired American HealthCare Lending, a leading patient financing platform, for $21 million in cash. A nationwide network of healthcare providers now have the capacity to offer affordable payment options to consumers who would like to finance medical procedures at the point of service.
“This acquisition is an important part of our strategy to grow awareness and expand our product offerings and capabilities into new vertical markets. Prosper Marketplace experienced incredible growth in 2014 as more people turned to the platform for everything from debt consolidation to home improvement to special occasions. Now, we have an opportunity to bring a consumer-friendly and potentially disruptive option for financing elective medical procedures to an industry that has been characterized by high rates and a lack of options.”
American HealthCare Lending is one of the fastest growing companies in the patient financing industry. It utilizes technology as it has a cloud based patient financing platform that is integrated with some of the most trusted lenders in the US.
Shaun Sorensen, CEO, American HealthCare Lending, added:
“The healthcare industry is in the midst of a massive transformation that is impacting out-of-pocket expenses for millions of consumers. We are excited about this opportunity to continue to bring positive change to a traditional industry like healthcare lending. We’ve already had incredible success working with the Prosper Marketplace team and we look forward to the opportunity this gives us to better fulfill our mission to Make Healthcare Affordable™.”
Nigel Morris, Managing Partner of QED Investors and Capital One Co-Founder, also weighed in:
“We believe that Prosper Marketplace has an opportunity to further transform marketplace lending. The addition of American HealthCare Lending is an important investment in Prosper Marketplace’s long-term growth and capabilities, and a step towards making marketplace loans available to more borrowers and for more use cases.”
Last year Prosper facilitated $1.6 billion in loans on the platform, up over 350% from the previous year. Lending Club recently announced a range of partnerships, and last year launched a product covering funding for elective medical procedures. This acquisition is not dissimilar and will likely provide a boost to Prosper’s transactional flows.