Prosper Marketplace

lending | p2p lending | wealthtech (retail) | personal finance management

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701 VISITORS | 1511 VIEWS

FOUNDING YEAR: 2005

LOCATION:

United States

REGION:

California

Last Update:
14 Feb, 2020

Description

Prosper is a peer-to-peer lending platform that connects people who want to borrow money with individuals and institutions that want to invest in consumer credit. Borrowers get access to affordable fixed-rate, fixed-term personal loans, and investors have the opportunity to earn attractive returns via a data-driven underwriting model. The company offers personal loans in the range of $2,000 to $35,000 for fixed term of 3-5 years for borrowers and retail investors can invest as little as $25 per loan. Recently, the company started Prosper daily service for personal financial solutions for consumers. It is a mobile app that offers consumers a suite of tools to make better financial decisions, including viewing all their financial accounts in one place, budgeting and tracking spending by category, identifying questionable charges, and monitoring their free credit score, which is updated monthly.

FOCUS

PRODUCTS & SERVICES:

P2P lending marketplace and financial tools providers. The company offers products are: Lending service: It is a platform that provides the different type of loan products such as Debt Consolidation Loans, Home Improvement Loans, Special Occasion Loans, Personal Loans for Business, Auto & Vehicle Loans, Short Term & Bridge Loans, Green Loans, Millitary Loans, Friends & Family Loans, Baby & Adoption Loans. Credit card optimizer: It is a mobile app that manages all credit cards at one place and helps customers to minimize the interest fees with early payment reminders.

REVENUE MODEL:

Viewable by subscribers only

MAIN CLIENTS:

Retail Consumers

EXISTING PARTNERSHIPS:

Partnered with HomeAdvisor to make it easier for homeowners to find financing and a contractor in one place. Some of the other partners Radius Bank, OnDeck, Free Credit Score, Credit Karma, Credit.com, SavvyMoney, LendingTree

COMMENT

Unlike traditional lending, Prosper provides a convenient and superior customer service with lower interest rates. Prosper Marketplace has evolved into a personal finance company that offers products and services beyond personal loans to help people get on top of their finances. New features include a redesigned automatic investment tool and a dashboard to see portfolio performance.

PEOPLE

MEDICI analysts will analyze Prosper Marketplace soon

TRACTION

VALUATION / MARKET CAP:

$1.7 Billions in 2015

TRANSACTIONS COMMENT:

The company has disbursed funds close to $8.9 B for borrowers to date (May 2017).

OTHER INFO:

To date, over $10 billion in personal loans have been originated through the Prosper platform for debt consolidation and large purchases such as home improvement projects, medical expenses and special occasions. (Sept 2017)

COMMENT:

In 2014, Prosper generated $81 million in revenue on $1.6 billion in loan origination, up from $357 million in the prior year. Most significantly, the company declared its first quarterly profit in the third quarter of 2014. Its growth spurt attracted new financial backing, which has boosted its valuation to nearly $2 billion. Prosper’s unexpected growth rate had many analysts convinced the company would seek an IPO in 2017. Prosper launched credit card optimizer to help consumers make better financial decisions in Dec. 2016. Prosper also relaunched an online platform for retail investors in recent days to improve the experience for loan buyers. In Feb 2017, Prosper Marketplace announced that it has closed a deal with a consortium of institutional investors to purchase up to $5 billion worth of loans through the Prosper platform over the next 24 months.

MOMENTUM

FUNDED:

YES

TOTAL FUNDING:

$50 Millions

DATE OF LAST FUNDING:

Jan 2018

TOTAL FUNDING COMMENT:

An undisclosed amount raised in secondary market in 2016.

FUNDING SERIES:

SERIES G

$50 Millions Closed: Sep 2017

Secondary Market

$1.61 Millions Closed: Mar 2016

LISTED:

COMMENT:

Venture: $48 M(2013). Private Equity: $235 M(2015). Series G: $50 M (Sept 2017)

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