Venture capitalists continue to back the alternative lending startup community despite recent fallout from Lending Club and revelations the company’s then-CEO Renaud Laplanche allegedly falsified loan documents.
While Lending Club’s struggles have caused some worry as to the future of the marketplace lending industry, investors this week pumped millions into the sector, hinting at the continued resilience of the space.
In one deal, Metropolitan Equity Partners announced a $20 million investment in Bizfi. The funding, revealed Tuesday (June 28), will help the FinTech and SME marketplace lending platform expand its loan program offerings. The company added that it also plans to accelerate the speed with which SME loan applicants receive their financing, as well as launch a national marketing campaign.
“While the FinTech industry has experienced some recent headwinds, our confidence in both Bizfi and its place in the alternative financing industry has never been stronger,” said Metropolitan Managing Partner Paul Lisiak in a statement.
Also on Tuesday, India alternative lending marketplace Lendingkart announced its own investment round.
The firm revealed a $32 million Series B investment led by Bertelsmann India Investments, while backers at Darrin Capital Management, Mayfield India, Saama Capital and India Quotient also participated. The $32 million follows Lendingkart’s $10 million investment round last year.
Reports said the company plans to use the new funds to strengthen its data science capabilities and enhance the technology behind its platform. It also plans to develop a more mobile-friendly solution.