Payoff, a US-based personal finance management platform backed by internet company Tencent, has raised $46.7m in a funding round that has a $67.4m target, according to a securities filing yesterday.
Founded in 2009, Payoff helps users understand their financial situation and provides loans between $5,000 and $35,000 to help them pay off credit card debt. The loans have two to five-year-long terms with fixed annual interest rates of 8% to 22%.
Payoff primarily targets millennials, who need to have a good credit score (at least 720 out of 850), a minimum credit history of three years and a gross income of $25,000 to apply for a loan on the platform.
The company secured $250m in debt financing from Eaglewood Capital Management in July 2015, according to the Wall Street Journal, which revealed at the same time that Tencent had earlier invested in the company. Further details about Tencent’s involvement remain unclear.
Payoff had raised $38.4m in equity funding ahead of the current round from backers including investment holding firm Anthemis Group, venture capital firms FirstMark Capital and Great Oaks Venture Capital, investment firm Innovate Partners and assorted angel investors.