Business marketplace lender Loan Frame has announced a $2.25 million fundraise that will help the firm expand its business in India as demonetization and the Indian economy present new opportunities for growth; participants in the $2.25 million funding round included the co-founder of Vedanta Capital, the former chairman of Visa International and the co-chief executive of MIO Partners; the platform has stated it is seeking to build the largest small and medium-sized business lending marketplace in the sub-continent; expects to lend $150 million over the next two years with both secured and unsecured loans. Source
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Online Lending
PeerIQ released its fourth quarter "Marketplace Lending Securitization Tracker" this week; marketplace lending accounted for $2.4 billion of the securitization market in the fourth quarter; data from the fourth quarter report shows securitization investments as an increasingly important source of capital for marketplace lending platforms; in 2016 70% of loans were invested in through securitizations. Source
2016 was a year filled with shaky investor confidence, compliance issues and bad credit performance in online lending; OnDeck CEO Noah Breslow's 2017 LendIt USA keynote focused on the challenges posed by 2016 and the trends for 2017 and beyond; after seeing how the industry reacted to these challenges he stated that he is now more optimistic than ever before; the industry is maturing and measures of success have shifted; the unstoppable trends include: customer awareness, trust and adoption of online lending, bank partnerships, constructive engagement between the public and private sector, and the global growth of online lending; he also predicts that by the mid 2020's nearly all small business loans will be made online. Source