By Daniel Lanyon on 6th December 2016
The personal finance and lending platform has raised new capital to fuel its future growth in a new round led by Edison Partners.
Personal finance platform MoneyLion, which uses machine learning analytics in order to lend money to consumers, has raised $22.5m.
The Series A cash, together with $650m in existing debt facilities, will help fuel MoneyLion’s growth and significantly expand its lending capacity, the firm said in a statement.
Existing investors, including FinTech Collective, Citizen.VC, Clocktower Ventures, Broadhaven Capital Partners, Montage Ventures, and prominent individual investors from the finance and technology industries, also participated in the funding round.
Founded in 2013, the firm is a competitor to the likes of SoFi and Lending Club as a lender but also has several key differences to marketplace lenders. Firstly, it holds some of the loans it originates on its balance sheet while selling others on. It also has a personalised approach for each of its users and its mobile app aims to simplify personal financial management, providing a single place to track spending, savings, and credit.
Its analytical models, that power its recommendations go beyond borrowing - ranging from helping building savings, improving credit health, or managing an unexpected expense with a personal loan.
MoneyLion’s loan business has been growing three-fold year-over-year in originations and volume, with over 150,000 loans originated. MoneyLion will deploy the funds from the equity round to continue investing in the technology and talent that will help the firm grow in new and existing markets.
MoneyLion’s CEO Diwakar Choubey says the needs of consumers are changing. “Not only do they [consumers] need faster access to personalized credit products in a seamless digital format, but also better tools and data-driven recommendations that provide a clearer understanding of their entire financial lives,”
“This funding, along with our existing debt facilities, will help accelerate our work to provide smart financial products to millions of consumers seeking to take control of their financial well-being,” he added.