This fundraise brings the platform’s total UK debt funding since inception to over £300m.
UK consumer lending platform AvantCredit, a subsidiary of Chicago-based Avant, has today announced that it has secured £130 million in debt funding. The fresh capital injection comes courtesy of a number of undisclosed financial institutions and brings the platform’s total amount of debt raised to date to over £300m.
Launched in 2012 in the US, Avant began operations as a balance-sheet based consumer-lending platform, with a strong emphasis on the use of big data, automation and machine learning. In April 2015, the platform rolled out a marketplace sales programme allowing institutional investors to tap into the its deal flow.
Avant expanded into the UK – under the new name of AvantCredit – and into Canada in 2013 and in 2015 respectively. The various Avant platforms have issued a grand total of 480,000 loans globally, crossing the $1bn mark in cumulative loan originations last May. Approximately $2bn in loans were originated in 2015 alone and this figure might reach $6bn by the close of 2016.
Raj Singh, Managing Director of AvantCredit, offered commented:
“The financing is another indicator of our significant growth and commitment in our UK business. The ability to raise capital in a challenging financial landscape demonstrates trust in our brand. We are not a peer-to-peer lender, so securing balance sheet funding is crucial to our success. We have ambitious plans for the UK; we were recently awarded a 5 Star Defaqto rating and already have some of the highest NPS scores in the industry.”
AvantCredit has issued more than 60,000 loans in the UK to date, with a cumulative lending volume of more than £150m. This new milestone follows on form the recent appointment of two non-executives to its UK board of directors – H. Eugene Lockhart, former Global President and CEO of Mastercard, and John Uphoff, former head of Global Collections, HSBC Retail Banking.
Mr. Singh added:
“We will continue to bring innovation to Consumer Lending in the UK through the introduction of new products but also through significant deals similar to the Regions Bank deal we recently announced in the US which is the first of its kind in our sector.”