US-based online lending platform Upstart yesterday announced a $32.5m series D round co-led by internet company Rakuten through its Rakuten Fintech Fund and an unnamed US-based asset manager.
Third Point Ventures, Khosla Ventures and First Round Capital also contributed cash.
Upstart, founded in 2012, operates an online lending platform that assesses customers on signifiers such as academic and work history rather than their credit score. A total of 20% of loan applications are processed automatically.
Upstart runs an online lending platform that assesses potential borrowers not on their credit scores but on other signifiers such as academic and work history. It runs more than 68,000 simulations on each potential customer to model possible events and outcomes over the term of the prospective loan.
The company aims to originate more than $1bn in loans this year, up from $650m since the platform’s launch in May 2014. Oskar Mielczarek de la Miel, managing partner of the Rakuten Fintech Fund, will join the board of directors.
Additionally, Sanjay Datta, former vice-president of global advertising finance at internet company Google, has been hired as Upstart’s new chief financial officer.
Upstart previously closed a $35m series C round in 2015 led by Third Point with participation by Khosla Ventures, First Round Capital and Collaborative Fund.
GV, the corporate venturing arm of conglomerate Alphabet then known as Google Ventures, backed a $1.75m seed round in 2012 alongside First Round, Kleiner Perkins Caufield & Byers, New Enterprise Associates, Crunchfund and Mark Cuban.
In 2013, First Round led a $5.9m series A round that featured Khosla, Collaborative Fund, Founders Fund as well as Eric Schmidt, Marc Benioff, and Scott Banister.