AAA Lending Club acquires new member with $115m in financing

Lending Club acquires new member with $115m in financing

Lending Club, a US-based company that aims to use technology to offer better rates to borrowers and investors, has raised $115m in debt and equity financing.

Lending Club, previously backed by investors including Google Ventures, raised $65m in equity funding from sources including accounts backed by T. Rowe Price Associates, Wellington Management Company, BlackRock and Sands Capital.

The company did not disclose which lenders provided the $50m in debt, but the overall financing was used to support the $140m acquisition of Springstone Financial, a US-based provider of finance for education and medical expenses.

Google Ventures, the corporate venturing unit of Google, took a minority stake in Lending Club along with Foundation Capital in 2013 through a $125m secondary transaction.

Founded in 2007, Lending Club has now attracted about $290m in investment from backers that also include Kleiner Perkins Caufield & Byers, Thomvest Ventures, Union Square Ventures, Union Square Ventures, Morgenthaler Ventures, Norwest Venture Partners, Canaan Partners, Silicon Valley Bank and Gold Hill Capital.

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