Posted January 22, 2021
LendingPoint, based out of Kennesaw, Georgia, announced this week a $125 million preferred equity investment from Warburg Pincus.
The investment comes at a unique time in the FinTech and lending industries. CEO Tom Burnside told Hypepotamus via email this is LendingPoint’s first external capital injection, which comes as the company recorded its second profitable year.
“We’ve been thoughtful about the decision to bring in an institutional investor. Until now, we’ve chosen to fund our growth via private investors within our networks,” said Burnside.
“But today, changing consumer preferences have driven the fintech space to an inflection point. Today’s consumers want to go online and transact, whether it’s for a car loan or dental work. The industry is positioned to become a predominant force in the future of finance, and we believe we’re bringing the right products to market at the right time.”
The investment will go towards the platform’s data and technology.
LendingPoint has made a name for itself since its founding in 2014 by providing installment loan options to consumers and small businesses by using big data, machine learning, and credit algorithms to provide personal loans and financing options up to $25,000.
“LendingPoint’s unique use of data and technology and best-in-class lending platform has enabled it to scale rapidly by providing financial solutions and superior service to its expanding customer base,” said Eric Friedman, Managing Director of Warburg Pincus, in a statement. “We believe LendingPoint has substantial opportunities for continued growth and are excited to partner with Tom and his management team to execute on these opportunities, invest in new capabilities, and support their customers.”