Ethical lender announces £40m investment to fuel growth and end ‘financial exclusion’
London-based ethical lender Plend has announced it has raised £40m in seed funding from new investors, including Leon & Soho House backers Active Partners, as well as Velocity Juice, Sivo and the founders of Monzo, Starling Bank and Oodle Car Finance.
The round includes existing pre-seed investors: Ascension, Tomahawk VC, DD Venture Capital and Haatch who doubled their initial commitments following post-launch growth and above-expected loan performance.
The round is seen as a ‘vote of confidence’ in Plend’s mission to rebuild the ‘outdated and backward’ credit system, which the lender says discriminates against applicants based on limited historical data rather than what anyone can really afford.
The investment will be used to help scale the business through 2023, focusing on acquiring new customers through new partners and reaching new audiences who find themselves excluded from the current credit system.
Following its launch in July 2022, over £40m of loan applications have been processed through the consumer lending platform and the loan book is growing by 20% month-on-month. Thanks to recent funding and newly formed partnerships with Monevo and ClearScore, Plend will more than double its lending by the end of the year.
Plend is enabling wider access to “really affordable” loans and has so far helped 70% of its customers restructure their debts as households across the UK look for better ways to manage their finances.
Plend also launched its first fully integrated “green finance” product this year, helping customers with low-interest loans to purchase green energy installations such as solar panels and heat pumps through its partnership. with MakeMyHouseGreen.
Rob Pasco, CEO and co-founder of Plend, said, “This new round of funding caps off an incredible year for Plend. Since launching our first affordable consumer credit product this year, we’ve been able to help so many people access the money they need to get on with their lives at affordable and fair rates.
“We are delighted to work with our new investment partners to provide a truly ethical alternative to the failing credit scoring system that shuts so many out of the market, especially in these times of economic turbulence and rising interest rates. .”
Nick Green, seed investor at Active Partners, added: “We are delighted to invest in Plend. With their innovative technology, they are creating a fairer lending environment and improving the lives of many consumers currently burdened with high interest loans. »
By Matthew Neville – Correspondent, Bdaily
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