LendUp has announced it is scaling its credit card business as a stand-alone company, Mission Lane.
The move was made possible through investment from LL Funds and Invus Opportunities, as well as participation by QED Investors.
Vijesh Iyer, previously LendUp's COO, has been named interim CEO of Mission Lane while the company searches for a permanent chief.
LendUp's business will now focus on personal loans, gamified education, and savings opportunities as an independent company. The newly-created Mission Lane will handle credit cards, including that business line's card portfolio, IP and technology platform. Separating the two businesses will allow them each to grow with separate technology platforms, as well as ensure that both are able to expand their reach with their mobile-first products.
"While most of the financial services industry is aimed at the prime and near-prime end of the credit spectrum, these moves set not just one, but two companies up for long-term success," Frank Rotman, co-founder of QED Investors and one of the earliest executives at Capital One said in a press release. "Now, LendUp and Mission Lane are better positioned to serve the more than half of Americans who lack access to high quality financial services," he said.
In addition, Anu Shultes, GM of LendUp Loans and a 25-year veteran of subprime credit and financial services businesses, has been named CEO of LendUp. She will also join LendUp's board.
"I appreciate the Board's confidence in me and am excited to lead this fantastic organization," said Shultes. "We're on track to profitably expand into new consumer segments and geographies, launch new loan products, double new customer originations, and carry on our mission to help anyone get on a path to better financial health."
Sasha Orloff, LendUp's co-founder and CEO, will step down from day-to-day responsibilities but remain a board member as well as an advisor to Mission Lane.