AvantCredit, the first analytics-based online personal lender in the near-prime space, announces a $20 million equity round led by August Capital and Victory Park Capital.
The funding brings AvantCredit's total equity raised and debt committed to more than $54 million and comes just four months after their Series A funding.
AvantCredit plans to use the new capital to grow its loan portfolio, fund geographic expansion, and further develop its machine learning lending platform, a new undertaking in the near-prime consumer lending space.
"We are excited to continue to support AvantCredit," said Eric Carlborg, partner of August Capital. "In just a few months, the company has built a unique underwriting algorithm and demonstrated operational excellence with efficient customer acquisition and disciplined loan servicing processes. The capital we are providing is to help AvantCredit to continue on this trajectory."
"Customers are responding to AvantCredit's fair assessment of their credit-worthiness and its convenient online process," said John Sun, co-founder and chief risk officer of AvantCredit. "We are excited to provide an alternate solution to individuals who have found it hard to get a personal loan from traditional lenders. The ongoing support from August Capital and Victory Park Capital will allow us to strengthen our analytics and technology infrastructure in order to provide our customers with an even better borrowing experience."
The company is currently providing personal loans between $1,000 and $20,000 to near-prime borrowers in California, Texas, Georgia, South Carolina, Illinois, Wisconsin, Louisiana, Oregon, Delaware, Idaho, Virginia, Missouri, Alabama, Utah, New Mexico and South Dakota, with Colorado coming soon.