Prosper Marketplace closes USD 75 mln financing round

Prosper Marketplace , a US-based peer-to-peer lending platform, has closed a new USD 75 million financing round from Neuberger Berman

Prosper Marketplace , a US-based peer-to-peer lending platform, has closed a new USD 75 million financing round from Neuberger Berman . According to Prosper, the new capital will enable the firm to meet strong consumer demand for its personal loan, credit card, home equity, and investment products, as well as accelerating growth opportunities for the company over the coming years.

The company now has over 150,000 customers for its credit card product that launched in December 2021, and recently launched a new fixed-rate home equity loan product that complements its existing home equity line of credit product. Prosper offers affordable and personalised financial solutions that helps customers as they move across the credit spectrum. A purpose-driven pioneer of peer-to-peer lending, Prosper has helped 1.

5 million people, and counting, achieve financial well-being. Launched in 2005, Prosper’s vision is to transform lives by providing affordable financial solutions through the simplest and most trusted platform. The company's platform has facilitated USD 20 billion of affordable credit solutions by leveraging their workforce, trusted brand, artificial intelligence, and advanced technology.

Prosper in recent news In October 2022, Prosper Marketplace announced access to a new fixed-rate Home Equity Loan (HELoan) product for its customers in select US markets, ‘following the lending platform’s strong performance in personal loan origination last quarter’. This new product complements Prosper’s suite of home equity products and resources and allows homeowners to leverage the equity in their home to secure a loan up to USD 249,0001. In January 2022, Prosper Marketplace has launched the Prosper Card.

As mentioned by the company, the credit card helps people take control of their finances with access to affordable rates and attractive terms, automatic reviews for credit line increases, no annual fee for the first year with autopay, no-fee ATM cash advances, no security deposit, and free access to financial education content and resources. Starting with a simple online application, consumers can apply for the Prosper Card in minutes with the option to select their own due date and no annual fee for the first year by signing up for autopay. Peer-to-peer lending Peer-to-peer lending has attracted considerable attention in recent years, largely because it offers a novel way of connecting borrowers and lenders.

P2P lending uses online platforms to directly connect people who want to borrow money with people who want to lend money. So, instead of taking out a traditional loan from a bank or credit union, customers borrow money from individual investors who are registered on a P2P lending platform. A P2P loan might be entirely backed by one person.

Or several people might join forces to back a loan. P2P lending platforms typically rely on automated systems and algorithms to assess applicants’ creditworthiness, set loan terms, and determine interest rates. The emergence of P2P can increase the overall financial inclusion index.

With the right technology, P2P lending service providers can get loans to a wider audience, including people who have never previously received financial services from formal institutions. .

Nov 23, 2022 13:33
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