AvantCredit, one of the nation's fastest growing online consumer loan providers, announced today that it has closed $225 million in Series D equity funding.
This funding brings the company's total equity raised to over $300 million and debt capacity to $700 million and will advance its mission to lower the cost and barriers of borrowing around the world.
The Series D funding is led by Tiger Global Management and August Capital and combines contributions from prominent venture capital groups, including first-time investments from DFJ Growth, RRE Ventures, KKR & Co. and PayPal Co-Founder, Peter Thiel. AvantCredit will use the capital to support the high-trajectory expansion of its loan portfolio, continue enhancing its data and analytics capabilities and bolster its lineup of top technology talent.
"As our largest round of equity funding to date, this Series D funding represents an important endorsement of our business model and our mission to provide consumers with a new way to borrow responsibly," said Al Goldstein, AvantCredit's Chief Executive Officer and Co-Founder. "We're dedicated to sustaining our growth and providing our customers with a better, faster and more convenient lending experience."
"There are a lot of banks in the United States, but not enough access to credit," said Peter Thiel, PayPal Co-Founder and venture capitalist. "AvantCredit continues to prove that technology can solve this fundamental financial problem."
Since the Company issued its first loan in January 2013, AvantCredit has grown its Chicago-based operations to nearly 500 employees, surpassed 100,000 customers, serviced more than $500 million in personal loans and increased quarterly loan volume by more than 500% since Q3 2013 – keeping it on track to double in size over the next year.
"AvantCredit is transforming the banking industry by harnessing impressive machine-learning technology and providing consumers peace of mind when borrowing money," said Randy Glein, a managing director at DFJ Growth. "Consumer lending has not kept pace with changing market dynamics and AvantCredit has quickly ascended to the forefront – powering the industry's much needed evolution."
"AvantCredit is one of most promising players in the financial technology space," said Jim Robinson III, Founding General Partner at RRE Ventures and former Chairman and CEO of American Express. "AvantCredit is well positioned to sustain its impressive growth for the long term."
The Series D funding coincides with a $300 million expansion of an existing credit facility with Chicago-based investor and longtime supporter, Victory Park Capital. The additional debt funding, which brings Victory Park Capital's total commitment to $500 million, will be used to fuel new customer acquisition and continue to expand the company's loan portfolio.