Lendio, a marketplace for small business loans, has secured $55m in Series E funding round led by Mercato Partners’ Traverse Fund.
The funding consists of $31m in equity from Mercato Partners’ Traverse Fund and a $24m debt facility from Signature Bank.
In addition, the investment round was also participated by existing investors including Napier Park Financial Partners, Comcast Ventures, Blumberg Capital, Stereo Capital and Runa Capital.
Lendio CEO and co-founder Brock Blake said: “This $55 million round is a significant milestone in Lendio’s mission to fuel the American dream as a financial matchmaker that brings high-tech, high-touch capital to the small business economy.
“With these funds, we are strongly positioned to grow our existing platform as a trusted loan facilitator that supports both lenders and borrowers, while building out a range of new integrated lending services that get the right loans into the right hands at the right time. We are grateful for the continued support and trust of our investors who believe in our growth strategy.”
Lendio will use the funding to enhance its Sunrise bookkeeping and loan marketplace platforms
Lendio said that the new funding will strengthen its operations to enhance its loan marketplace, and facilitate its expansion into new bookkeeping and lender services functions.
The company intends to expand its online bookkeeping platform, Sunrise by Lendio, to enable small business owners manage their cash flow and visualise their financial health.
In addition, Lendio intends to use the funding to enhance its lender services division, based on a software-as-a-service (SaaS) partnership model.
The lender services division provides access to a custom, white-labelled online application for banks, credit unions and online lenders, which allows the financial institution to accept loan applications online.
Lendio said that integration of its Sunrise bookkeeping and loan marketplace platforms will enable it to effectively meet the capital needs of business owners.
Mercato Partners Traverse Fund senior investor Ryan Sanders said: “Lendio’s ability to combine data analytics with the human touch to connect small businesses quickly and precisely with ideal lending partners has made all the difference in its success
“Lendio uniquely solves the problem of inefficient capital for small businesses by bridging lenders and borrowers. They are able to connect both sides and facilitate loans faster and more effectively between small business owners and lending institutions. Lendio’s impressive growth is a result of its technology-backed personalized service which has created a loyal and growing following in the industry.”
