Prosper Announces $50m Series G Investment

By Daniel Lanyon on Sunday 24 September 2017

Alternative Lending

The firm has appeared to have shifted 'back on track' this year ahead of the new cash raise.

The firm has appeared to have shifted 'back on track' this year ahead of the new cash raise. 

Prosper has secured a $50m investment from a fund co-managed by FinEX Asia. The Series G investment brings Prosper’s total equity raised to $410m to date.

The firm, one of the largest marketplace lending platform for consumer loans in the US, says it will use the cash to make strategic investments in the company’s platform and products.

Prosper has recently recorded strong results after a year long inertia in its growth prospects as well as rebooting a securitisation strategy.

In February this year it secured a $5bn loan purchasing agreement from a consortium of investors which included affiliates of New Residential Investment Corp., Jefferies Group and Third Point, as well as an entity which is principally managed by Soros Fund Management.

In the second quarter it saw $775m in loan originations through its platform (up 32 per cent quarter-over-quarter and 74 per cent year-over-year), and an increase in transaction fee revenue (up 32 per cent quarter-over-quarter and 84 per cent year-over-year).

“This [new Series G] investment is a strong signal of confidence in our business fundamentals and the momentum we are seeing right now,” said David Kimball, CEO, Prosper Marketplace. “Over the past year, we’ve shown that we can build a sustainable business that continues to redefine the online lending experience for our borrowers and investors. We believe this partnership will open up additional opportunities for our business as we continue to grow.”

To date, Prosper has facilitated more than $10bn in consumer loans through its platform. Additionally, the company generated $8.6m of Net Cash from Operating Activities in the second quarter of 2017 driven by an increase in origination volume, improved marketing efficiencies, and lower general and administrative expenses.

Financial Technology Partners (FT Partners) served as financial advisor and Orrick, Herrington & Sutcliffe LLP served as legal advisor to Prosper. Ropes & Gray served as legal advisor to the investment fund.

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