Prosper Announces $75 Million Growth Capital Financing
A long-admired FinTech has added some new capital to its coffers and it continues to grow after more than 15 years in business. Recently, Prosper Marketplace announced that it had closed a $75 million debt financing round. This capital came from a fund managed by Neuberger Bergman and will be used to help Prosper meet the demand for its loans, credit card, investment products, and more.
According to the company, the funds will also allow them to accelerate their growth. Including this financing, Prosper has raised a total of $490 million to date, with its largest equity round being its $165 million Series D back in 2015.
Billed as the first peer-to-peer lending platform in the United States (edging out rival Lending Club), Prosper has since expanded its offerings to include home equity lines of credit, healthcare financing, etc. Additionally, earlier this year, the company introduced its Prosper Card credit card. This allows customers to build credit with limits between $500 and $3,000. Although the card does come with a $39 annual fee, that can be waived for the first year if cardholders opt into autopsy.
These offerings have allowed Prosper to grow, with the company citing strong year-over-year results. In fact, the FinTech facilitated more than $1 billion in personal loan originations during the third quarter of this year. Notably, that’s double the total seen in Q3 2021. Additionally, Prosper states that it now has more than 150,000 Prsoper Card members.
In a statement about the latest financing and the prospects of Prosper in general, the company’s CEO David Kimball noted, “This is one of the most exciting times in Prosper’s history. This additional capital will enable us to accelerate investments across all our products and expand our reach as a financial technology platform that transforms the lives of people across the credit spectrum.”
Elsewhere, Neuberger Berman Managing Director Zhengyuan Lu said of the company, “We have been thoroughly impressed by Prosper’s approach to managing its business and are thrilled to partner with the company in its mission to advance financial wellbeing.”
Although other FinTechs have often eclipsed Prosper in terms of buzz, the platform’s longevity and continued growth are impressive — especially as the sector has seen its share of ups and downs since the company was founded in 2005. On that note, with the company already seeing a strong year, this extra capital will surely help fuel them to an even more successful 2023. Plus, as Prosper continues to diversify its offerings, it will be interesting to see what they roll out in the months ahead.