CircleBack Funding has completed a Series A equity round worth $17.4 M. The round was led by Pine River Capital Management, which has also agreed to purchase $500 M of high quality consumer loans through the CircleBack platform.
Michael Solomon - CircleBack’s CEO – commented:
“This is another great milestone for CircleBack, particularly with Pine River’s expertise in consumer and commercial credit assets”
Mr Solomon continued by giving some indication of what the capital will be used for:
“The proceeds will be used to continue scaling in a thoughtful and responsible manner,”
CircleBack has experienced strong growth since its launch in 2013, having facilitated over $200M in loans since then. Mr Solomon cited the promise that the industry still has to offer, quoting a figure from PwC that the market place lending sector could be worth $150 bn within 10 years. Looking further ahead, the company looks at the immense space that remains to grow into, with the US consumer credit market worth an estimated $11 bn.
CircleBack is no stranger to partnerships, and last year signed a deal with Jeffries that also saw $500m committed to the platform. Available only to prime and super-prime US borrowers, the CircleBack model firmly demonstrates the by now-obvious point that alternative finance isn’t just for those with credit ratings too low to receive a bank loan.