Warburg Pincus to Invest $125 Million in LendingPoint
LendingPoint is an online lender founded in 2014 by Tom Burnside, Juan Tavares, Victor Pacheco, and Franck Fatras. LendingPoint turned profitable in 2020. In the recent round of investments, Warburg Pincus announced it would invest $125 M. The investment comes in the form of preferred equity. Before raising $125 M, LendingPoint also received funding of $1.7 Billion through equity and debt financing. As per one of the sources, LendingPoint has raised a total equity of $325 million until now.
For those not aware, LendingPoint is a company that provides a platform that serves e-commerce. The platform can be used for financing. The lending services can be available to lending institutions, consumers, and point-of-sale partners. The core of this platform was that the US credit scoring system has imperfections. Because of this, many people cannot get loans through the proper channels. This is where LendingPoint comes into the picture. The platform uses technology and data to derive a credit story of a customer and help them with financing solutions.
What is the meaning of 125m Warburg Pincusann Azevedofinledger ?
In one of the articles, Mary Ann Azevedo mentioned that LendingPoint has robust asset management, risk management, and fraud prevention solutions. The LendingPoint solutions also enable the e-commerce platform to enable Buy Now, Pay Later solutions to the customers. These solutions have proved to be very beneficial for brands like Invisalign. LendingPoint has helped customers of such products to pay in parts. The approvals required are minimal, and LendingPoint also provides a Whitelabel platform to its partner. The Whitelabel platform also benefits brands in advertising their services. So 125m Warburg Pincusann Azevedofinledger means LendingPoint closes on $125 million investment from Warburg Pincus .
Looking at the growth, LendingPoint issued a loan of $2.5 billion between 2015 and 2020. LendingPoint has seen revenue growth of 865% between 2016 and 2019. This helped the company in turning itself profitable in 2020. As per the sources, LendingPoint is expected to use the fresh capital to expand its financial solutions. LendingPoint is also developing a mobile application to improve customer adoption. You may also see AI solutions to judge the customer’s credit performance and make credit decisions.