Lendify, a Swedish P2P lending startup has bagged US$115 million funding from global Venture Capital Insight Investment on 21st October 2020. After striking this new investment deal, they are ready to scale their services across Europe.
Lendify streamlines the traditional business model of banks, so that borrowers and people who save can gain more than what they used to. They build an advanced banking system with decent conditions. Lendify aims at revolutionizing loans and transferring the power from the borrowing institutions or banks to people. As a result, the ones who borrow will get lower rates of interest and the ones who save will get better returns.
The funding details
Insight has also lent it 1.5 billion Swedish kroner last year and again this year 1 billion Swedish kroner (US$115 million). The company is planning to use this funding to ensure their domination over the market of consumer-loans. “We offer the best customer experience and prices. The households should not have any reason to opt for any other loan provider” said Nicholas Sunden-Cullberg who is the present CEO of Lendify.
The company relies on institutional capital and peer-to-peer borrowing. Currently, they have a loan book of US$ 300 million, with approx 40,000 loan and active savings customers. The company is not profitable yet, it still has relatively better credit performance than other lending institutions and the niche Sweden banks.
The lending company wants to prepare its proprietary model for credit that can be introduced in other European markets. “We want their credit model to be free from the local reference agencies within a few years. This would put us in a stronger position in Sweden and also allow us to export their credit model to be easily exported to other markets” said CEO Nicholas on this.
The company was founded in April, 2014 and is a subsidiary of Lendify Technologies. It raised its first investment as seed funding of US$ 20 million within six months of its foundation. The major investors of Lendify include its founder John-Christian de Champs, Hakan Roos, Martin Gren and Richard Goranssaon. It was awarded as the most satisfied private loan customers as per SKI (Swedish Quality Index) in 2019. The company is primarily focused on revolutionizing lending so as to provide customers with better interest rates and savings.
About Insight Investment
The London headquartered Insight Investment is among one of the leading global asset management enterprises. It has over £681-billion assets under management across fixed income, multi-asset, liability-driven cash management and absolute return investment. It was founded in 2002 and is a subsidiary of multinational financial service enterprise, The Bank of New York Mellon.
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