US-based consumer finance provider Cumulus Funding raised $6m in series A funding on Friday from investors including financial trading technology producer HC Technologies, alongside $25m of debt financing.
Continental Investors led the round, which included D-W Investments, Bridge Investments, Service Provider Capital and Cumulus’s existing investors. The company had raised $850,000 from backers including Topping Capital in 2012.
Cumulus lends money to consumers through income share agreements (ISAs) that involve the borrowers repaying the cash through a percentage of their future earnings. The company, formed in 2015, has so far issued ISAs to more than 500 customers, who borrowed between $1,500 and $10,000 each.
Nathan Popkins, CEO of Cumulus Funding, said: ”We are incredibly excited to expand the reach of our income share agreement product. Historically, demand for our product has exceeded the capital that Cumulus has had available to fund customers.
“This relationship with our funding partners will give us extensive runway to enter into new ISA contracts with customers, and our equity capital will let us expand our reach into new states, add to our tremendous Chicago-based team and build new strategic partnerships.”