An ethical lender has raised £40 million to end ‘financial exclusion’ in a seed round featuring founders from digital banks Monzo and Starling.
London-based Plend was launched in July to rebuild the credit system, which it says discriminates against applicants based on historic and limited data.
More than £40m of loan applications have already been processed through its platform. Plend says its loan book is increasing by 20% month-on-month.
Having formed partnerships with Monevo and ClearScore, it also supports customers with low-interest loans to purchase green energy installations such as solar panels and heat pumps via a partnership with MakeMyHouseGreen.
New investors Active Partners, Velocity Juice, Sivo and Oodle Car Finance founders participated in the round alongside pre-seed investors Ascension, Tomahawk VC, DD Venture Capital and Haatch.
“This new round of funding caps off an amazing year for Plend,” said Rob Pasco, CEO and fo-founder. “Since launching our first affordable credit product to consumers this year, we have been able to help so many people get access to the money they need to get on with their lives at affordable and fair rates.
“We are thrilled to be working with our newest investment partners to provide a truly ethical alternative to the broken credit scoring system that locks so many people out of the market, especially during these times of economic turbulence and rising interest rates.”
Nick Green, seed investor at Active Partners, added: “We’re delighted to be investing in Plend. With their innovative technology, they are creating a fairer lending environment and improving the lives of many consumers currently burdened with high-interest loans.”