On July 23, 2014, one of the fastest-growing national online providers of consumer loans, AvantCredit, announced the completion of a $75 million round of Series C funding, led by Tiger Global Management, and a $200 million credit facility, led by Victory Park Capital.
“AvantCredit’s tremendous growth in just under two years is a reflection of consumer demand for a better, faster, more convenient borrowing experience,” stated Al Goldstein, CEO of Avant, in a press release. “This additional infusion of capital validates the success of our business model and will enable us to continue to innovate and enhance our technology – and attract the best and brightest data engineers in tech today.”
- This funding brings the company’s total equity raised and debt committed to over $300 Mn.
- AvantCredit says the funding will be used to support the high-trajectory growth of its loan portfolio, expand its technology and data capabilities and continue attracting and cultivating top talent.
- The company also says it has increased its quarterly loan volume over 500 percent since its Series B funding round in August of 2013, which enabled AvantCredit to grow from 70 employees to more than 300.
- The company plans to use the latest round of capital to hire additional developers and data scientists to enhance automation, continue to optimize underwriting, and expand its product offering.
- Once these enhancements are implemented, the verification processes will become fully automated, minimizing loan-default risk to reduce the overall cost of borrowing for its customers.
- The Series C funding coincides with the AvantCredit’s $200 million credit facility, which enables the company to expand its loan portfolio further by increasing investment in customer-acquisition activities, it says.
- AvantCredit provides personal loans of between $1,000 and $20,000 to qualified borrowers in nearly all 50 states.
- Loan amounts and APR are tailored for each customer based on a variety of factors, such as credit score and income.
“We’ve backed AvantCredit’s mission from the very beginning, and we’re excited to expand our role with this latest transaction,” said Brendan Carroll, a partner at Victory Park Capital. “With each new round of funding, AvantCredit continues its revolutionary disruption of the personal-loan industry with its passionate team, industry-leading analytics and personalized online approach to borrowing.”
AvantCredit says it is changing the way online-banking customers borrow money. Using advanced algorithms and machine-learning capabilities, the company offers a unique and highly customized approach to the personal-loan process. The combination of technology, analytics and customer-service capabilities enables the company to offer an easy-to-use online process for loans to borrowers, all entirely online. Find out more at AvantCredit.com.