LendUp, a US-based online payday loan company, has secured a $14m series A round led by Google Ventures, the corporate venturing unit of internet search firm Google, alongside venture capital firms QED Investors and Data Collective, angel investor Matt Ocko, and additional participation from existing investors and partners at technology incubator Y-Combinator. Blake Byers of Google Ventures joins the LendUp board and QED joins as strategic advisor.
The funding will be used to drive growth across the U.S.
Sasha Orloff, chief executive officer of LendUp, said: “In California, we’ve proven out a model with the potential to redefine the short term lending space. This investment gives us the opportunity to take what we pioneered in one state and offer it to millions of people across the country, bringing them access to safe, transparent financial products that provide them the credit they need, while setting them on path to a better financial future through credit education and credit building.”
LendUp states that the small-dollar consumer lending is a $45bn market in the USA.