Victory Park Leads $200MM AvantCredit Facility
AvantCredit announced the completion of a $75 million round of Series C funding led by Tiger Global Management, and a $200 million credit facility led by Victory Park Capital.
The funding, which brings the company’s total equity raised and debt committed to more than $300 million, will be used to support the high-trajectory growth of its loan portfolio, expand its technology and data capabilities and continue attracting and cultivating top talent.
“AvantCredit’s tremendous growth in just under two years is a reflection of consumer demand for a better, faster, more convenient borrowing experience,” said AvantCredit’s chief executive officer Al Goldstein. “This additional infusion of capital validates the success of our business model and will enable us to continue to innovate and enhance our technology, and attract the best and brightest data engineers in tech today.”
Subsequent to its contributions to AvantCredit’s Series B funding in August 2013, Victory Park Capital is joined by Tiger Global, a premier private equity firm and a market leader in technology growth equity investing. Since its Series B funding in August of 2013, AvantCredit has increased its quarterly loan volume by more than 500%, enabling it to grow from 70 to more than 300 employees.
To support its mission of becoming the leading online consumer lending platform, AvantCredit plans to use this capital to hire additional developers and data scientists to enhance automation, continue to optimize underwriting, and expand the product offering. Once these enhancements are implemented, the verification processes will become fully automated, minimizing loan default risk to reduce the overall cost of borrowing for its customers.
The Series C funding coincides with the company’s $200 million credit facility, which will enable AvantCredit to expand its loan portfolio further by increasing investment in customer acquisition activities.
“We’ve backed AvantCredit’s mission from the very beginning and we’re excited to expand our role with this latest transaction, said Brendan Carroll,” partner at Victory Park Capital. “With each new round of funding, AvantCredit continues its revolutionary disruption of the personal loan industry with its passionate team, industry-leading analytics and personalized online approach to borrowing.”