We reported in April that LendKey had secured a $1bn financing commitment from MidCap Financial. The platform has now announced that it has now deployed $800 million in loans to over 35,000 borrowers. It has also raised an additional $125 million in commitments from its network of lenders.
On top of the $125 million commitment from its client base of 300+ credit unions and banks, the platform has closed an $8 million venture debt line from Silicon Valley Bank. The venture debt will be used to drive continued technology and product innovation, and expand its partnership and marketing initiatives.
“Our growth demonstrates that traditional lenders have a solid opportunity in online lending. The LendKey platform enables banks and credits unions to offer their low-rate loans online, directly to consumers. With our technology, community financial institutions can succeed in the $3.2 trillion consumer lending market, offering increased choice, transparency, lower rates and a seamless digital experience.”
On top of this LendKey has appointed eight industry veterans to the management team: Strati Papageorge, Chief Product Officer; Mike Stallmeyer, SVP Finance; Anil Nair, SVP Engineering; Jason Hills, SVP Sales; Aswin Rajappa; SVP Marketing; Jeff Silberman, SVP Institutional Business Development and Anne Sharkey, SVP Loan Operations. This team brings expertise from a broad range of companies, including Dealertrack, UBS, Priceline.com, Capital One, Finserv and more.
Josh Stein, Partner, DFJ and LendKey board member, added:
“Venture capital is about finding visionary entrepreneurs who are bringing disruptive technology to bear in large markets. Markets don’t get much larger than the multi-trillion dollar consumer credit market and Lendkey’s innovative platform arms banks, credit unions and other financial institutions with new capabilities, enabling them to more efficiently serve their customers. The new investments and management expansion will enable continued growth at LendKey, and DFJ is proud to have been partnered with the team since 2010.”