Home » LendingPoint Raised $125M from Warburg Pincus

LendingPoint Raised $125M from Warburg Pincus

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In its seven-year history, LendingPoint received its first investment. A $125 million investment from Warburg Pincus in preferred stock investment was the icing on the cake. The business is a financial technology platform that offers finance origination tools to customers, lending institutions, and point-of-sale systems for e-commerce and retail. According to Tom Burnside, co-founder and CEO of LendingPoint, the firm had previously been bootstrapped before the equity investment.

Additionally, the business received additional investment, totaling more than $325 million, in equity to date. LendingPoint has a chance for sustained expansion, according to a written statement by Eric Friedman, managing director of Warburg Pincus. Regarding the investment, he noted that “Lending Point’s innovative use of data and technology, as well as its best-in-class lending platform, have enabled it to develop swiftly by delivering financial solutions and top-notch service to its expanding client base.”

The firm, which is situated in Kennesaw, Georgia, started to turn a profit in 2019, and finished its first full year of profitability in 2020. According to Burnside, the business first attempted to validate its idea and act as the customer’s unrestricted champion. He claimed that they concentrated on the consumer and how to bring them to this stage.

Through the purchase of San Diego-based LoanHero in 2018, the business entered the point-of-sale market. This allowed LendingPoint to broaden its credit models and attract new clients. With this financing, the company would now allow all the momentum to build, according to Burnside. He said that the company had been able to put together all of the required elements. They need the equity money to make it possible, he continued.

The money will be spent on enhancing the company’s mobile app with new features and functionalities, as well as building up its balance sheet and forward-flow agreements. It will also be used to invest in artificial intelligence and the user experience. Burnside stated that they need to keep acquiring consumers at the top of the funnel, develop goods that fit customers’ life journeys, and work on incredible delivery methods.

Burnside is hopeful that a fintech business may become the next JP Morgan as more companies enter the loan industry. He said that the market’s size, which is in the billions of dollars, gives an opportunity for four or five corporations “to do it right.”