PayPal, Inc. has recently invested in San Francisco-based startup LendUp. LendUp provides online loans to consumers that most banks consider ‘risky.’ PayPal confirmed the investment, though neither company provided further details on loan amounts or terms. The company has also made some recent shifts in upper management.
LendUp has promoted and added some former PayPal employees to its C-Suite team including Vijesh Iyer (COO) and Mandeep Walie (Chief Compliance Officer). The company also nabbed a few executives from Charles Schwab including Carrie Dolan (board of advisors), Jordan Olivier (VP of Finance), and Karry Bryan (VP and Controller).
Founded in 2012, LendUp has already snagged $50 million in equity from Kapor Capital, QED, and Google Ventures. The latest PayPal investment comes on the heels of LendUp’s newest credit card aimed at consumers with no or poor credit. The small startup is one of a handful of recent personal lenders aiming to change the face of traditional banking by providing loans and credit to consumers traditional banks tend to reject.
By providing consumers with small loan amounts, borrowers can slowly rebuild credit. Loan amounts begin at $250 and can increase to $1000 per year. LendUp also provides free financial education counseling through its main website (www.lendup.com). While in the spotlight due to the recent PayPal injection, LendUp has competition in the SME lending sphere.
Emerging Fintech Startups
LendUp is part of a new startup lending trend focused on providing credit to ‘medium-risk’ borrowers. Other lenders in the ‘Fintech startup’ group include Elevate, UpStart, and a slew of others. These companies use technology to analyze borrower applications and fill gaps that traditional lenders overlook. This data includes things like tax returns, deposits, bank statements, and credit scores. The analytical approach (coupled with faster processing speeds) often results in a wider range of approved borrower applications.
To learn more about this LendUp, take a look at our in-depth coverage here. You can also use SuperMoney’s database of lenders to find a loan that’s right for you. We’ve reviewed most available lenders (including the new startup class of lenders) so that you can find all the information you need in one spot – you can even apply for a loan directly through our website. Visit SuperMoney.com today to find a lender that fits your unique profile.
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Harriet writes mostly about technology and finance. She has been featured in Forbes, Business Insider, Success Magazine, in addition to SuperMoney.