Non-prime Lender Elevate Expands Credit Facility to $545 MillionJuly 26, 2016 | By: Srividya Kalyanaraman
Texas-based online lender Elevate expanded its credit facility by $100 million with Chicago-based alternative credit investment firm Victory Park Capital, reaching $545 million in total.
Elevate lends to non-prime borrowers with products like ‘Rise,’ an unsecured personal loan and ‘Elastic,’ a bank-issued line of credit in the US and ‘Sunny,’ a short-term loan product in the UK.
The company has originated more than $3 billion in nonprime credit to 1.4 million consumers to date and plans to use the funds to expand its suite of online credit products. The lender delayed its IPO in January this year where it planned to raise $79 million in a public offering, thanks to a down market. Nevertheless, it has grown originations by 80 percent annually to $189 million in Q1 this year.
Victory Park Capital’s other prominent investments in this sector includes Kabbage, Avant, CommonBond, LendUp and Orchard.Last modified: July 26, 2016
Srividya's work has appeared in publications like Money magazine, Advertising Age, FirstPost and The Economic Times. She has also dabbled in business intelligence solutions, and holds a Masters degree in Business and Economic Reporting from NYU.