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LendUp Receives $50 million Funding for Subprime Credit Card Push

LendUp is a financial organization, which provides the easiest, safest money when it is needed. Headquartered in San Francisco, California, the company was founded by Sasha Orloff and Jacob Rosenberg. The company is primarily into lending, finance and fintech. The company hasreceived a total equity funding of $111.5 million in 5 rounds from 22 investors. Among its top investors, AFSquare, Alexis Ohanian, Andreessen Horowitz and Bronze Investments, Data Collective have been primary.

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The San Francisco-based lender said it raised $47.5 million in an equity deal designed to expand its card business. The investment values LendUp at about $500 million, people familiar with the matter said. The fundraising, completed last month, was led by YC Continuity, the later-stage venture-capital fund of tech-startup incubator Y Combinator, said LendUp Chief Executive Sasha Orloff. Mr. Orloff declined to comment on the company’s valuation but said it came in at a “meaningful markup” from the last investment round.

By raising money to roll out a credit card for subprime borrowers, LendUp will be competing with mass-market banks such as Capital One Financial Corp. Last year, LendUp started a limited release of a credit card aimed at similar borrowers, called the L Card. The new effort will expand that brand. Unlike rivals such as Lending Club Corp., and other established startups that aim to give loans to middle-to-upper-class households, LendUp has targeted less creditworthy consumers who have more difficulty in accessing bank loans.

LendUp Receives $50 million Funding for Subprime Credit Card Push
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