Lending Club

HEDLINE: Lending Club acquires Springstone Financial for $140 million

Peer-to-peer lending platform Lending Club has acquired private education and elective medical procedures financer Springstone for $140 million in cash and stock.

To finance the deal, Lending Club raised $115 million, $50 million of which are debt financing and $65 million are new equity funding from T. Rowe Price, Blackrock and others. Lending Club is now valued at $3.8 billion.

Key Takeaway

Springstone provides affordable financing options for consumers looking to finance private education and elective medical procedures through a network of over 14,000 schools and healthcare providers.

The acquisition is part of Lending Club’s expansion into new verticals with the aim to become the bank of the future. Launched in 2007, Lending Club now offers small business loans in addition to personal loans and has started allowing banks to invest in Lending Club loans.

According to the press release, Lending Club facilitated more than $4 billion in personal loans to more than 250,000 consumers. The company raised around $300 million in venture funding and debt and is expected to announce its IPO this year.

The peer-to-peer lending market is growing very quickly with competitors like SoFi (Social Finance), CommonBond, SimpleTuition or smaller startups like Credible and Tuition.io who have all managed to attract significant investment and traction, as well.

Further Reading

  • Lending Club Acquires Springstone | Press Release
  • Lending Club Raises $115 Million, Acquires Springstone Financial for $140 Million | re/code
  • LendingClub, Valued at $3.8 Billion, Acquires Springstone | Bloomberg
  • Lending Club Raises $115M In Debt And Equity, Buys Financing Company Springstone Financial For $140M | TechCrunch
  • HEDLINE: SoFi raises $80 million Series C | EDUKWEST
  • HEDLINE: SimpleTuition raises $26 million Series E | EDUKWEST
  • HEDLINE: CommonBond expands its Student Loan Refinancing | EDUKWEST
  • HEDLINE: Student Loan Marketplace Credible raises $500k | EDUKWEST


lendingclub.com | Twitter | CrunchBase

Kirsten Winkler is the founder and editor of EDUKWEST. She also writes about Social Media, Digital Society and Startups at KirstenWinkler.com.