FinTech News
Yendo Raises Another $50 Million for Asset-Backed Credit Product
Yendo, a platform that allows consumers to access a line of credit secured by their vehicle, has revealed a new round of funding.
About Yendo’s Funding Round:
This week, Yendo announced that it has raised another $50 million. This Series B included participation from the likes of Spice Expeditions, Autotech Ventures, FPV Ventures, Pelion Venture Partners, Clocktower Technology Ventures, and Mark Cuban. To date, Yendo has now raised more than $300 million in funding ($97.5 million excluding debt financing). That total includes a $15 million venture round in 2024 and $24 million Series A in 2023.
With this funding, Yendo says it will be able to accelerate its expansion as it looks to pursue new markets outside of secured lending. Moreover, the company says its working to build an “AI-powered digital bank.”
Along with the venture capital news, Yendo also announced two new additions to its board of directors. Lyft co-founder Logan Green as well as Spice Expeditions founder Nick Huber will join the board as part of the funding deals.
More on Yendo:
Yendo offers a unique credit product: a vehicle-secured card. With the service, customers can access up to $10,000 in credit by getting pre-approved and then send photos of their car and title to confirm their credit limit. Note that some borrowers may also need to mail their title to Yendo.
For customers who haven’t yet paid off their car, Yendo also offers the option to refinance an auto loan through them. By doing so, they may also become eligible to tap their “vehicle equity” using the Yendo card.
What They’re Saying:
Commenting on the state of Yendo, the company’s CEO and co-founder Jordan Miller said, “We’re on a mission to transform consumer finance. Our patented AI systems prove it’s possible to unlock trapped asset equity safely and affordably at scale. They cut onboarding and operating costs by orders of magnitude, opening up the most powerful credit products in the market to underserved consumers.”
As for the Series B itself, Miller stated, “This funding accelerates our vision of building the bank for the underserved majority, a platform that’s already saved people hundreds of millions while providing significantly higher credit access. We’re well on our way to creating equity of financial opportunity for over 65 million Americans.”
My Thoughts:
Obviously, the name that jumped out to me in this update was Mark Cuban. If I were Yendo, I definitely would have included a quote from him in my press release.
Also, seeing this news, I did go back to my previous coverage of Yendo. In doing so, I did find that the company stated that its 2024 funding would help them to expand to all 50 states. At the time, the service was available in 40 states — and, according to their site now, they are in 38 states. Clearly, their inability to operate in certain markets may not be entirely their fault, but it is interesting that they seem to be moving backward in that previously stated goal.
Anyway, with this impressive raise, it’s clear that people smarter than me have a vision for Yendo and its potential. Personally, I do think it’s an interesting idea, so I’ll continue to follow along and see what’s on the road ahead for them.
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