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Startup Lendify Closes $ 115 Million Funding Deal

Swedish peer-to-peer (P2P) lending startup Lendify has secured $ 115 million in funding from Insight Investment, according to a Bloomberg report Wednesday (October 21).

Last year Investment Insight backed the digital lender with an injection of 1.5 billion crowns. Former investors also included Hakan Roos, Martin Gren, Richard Goransso. Co-founder of Lendify Jean-Christian de Champs also helped with funding.

Lendify said the latest round of funding will help the company move forward with its European expansion plans.

Co-founder and CEO Nicolas Sunden-Cullberg said the funding will also help the 2014 start-up take control of the consumer loan market.

“Households should have no reason to consider another loan provider,” he told Bloomberg. “We will offer the best price and the best customer experience. “

In the past, the startup was backed by P2P loans and institutional capital. Today, it has an estimated loan portfolio of $ 300 million, as well as around 40,000 active savings and loan clients.

Sunden-Cullberg said the company aims to eventually separate itself from the region’s credit reference agencies, which “would provide us with a stronger position in Sweden and also allow us to export it to new markets.”

He added that for this to happen, “requires data sources that are not local, such as bank account transactions.”

While not yet profitable, Lendify’s CEO said the company was doing better than expected amid the pandemic. He said credit losses for the year to date are a little lower than “the average” for niche banks in Sweden.

In 2019, Lendify’s parent company, Insikt, changed its name to its new name, Aura. James Gutierrez, Co-Founder and CEO of Insikt, said PYMNTS the company was looking for a new name that would better complement its expanding mission.

He said that at Aura, they aspire to “really see the customer” by looking at less obvious metrics beyond what’s in a credit score.

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