LendStreet, an online consumer debt restructuring and consolidation platform, has closed a $7m Series A round and landed $110m in debt financing.
The Series A round was led by Prudential Financial and Radicle Impact, with participation from existing investors Accion, the Center for Financial Services Innovation (CFSI), Serious Change, Crunchfund, Kapor Capital, and Cross Culture Ventures. Its debt financing came from Prudential and Community Investment Management (CIM).
LendStreet restructures debt for consumers in financial distress. The company provides technology- based solutions and resources to help reduce consumer debt, increase credit scores, and improve savings.
“Lower and middle-income Americans are struggling and relying on high interest credit cards for their day-to-day survival. These investments will enable us to scale our platform and reach more consumers who are struggling with too much debt,” said Jerry Nemorin, founder and CEO, LendStreet. “Prudential, CIM, Radicle Impact, and our other investors share our vision of finally giving mainstream Americans access to an equitable and transparent alternative for their mounting credit card debt.”
Based in Oakland, California, was launched in 2013 to help financially distressed consumers improve their financial health. LendStreet works with other financial organisations to negotiate discounts with creditors on behalf of individuals in financial distress.
“Many Americans are living paycheck to paycheck and don’t have the adequate resources to withstand a financial shock,” said Miljana Vujosevic, vice president of Impact Investments. “Too many consumers have no choice but to turn to products that don’t offer a viable, comprehensive, trustworthy solution. Our investment in LendStreet is another example of Prudential’s long-term commitment to solving societal problems and developing solutions that improve the financial health of our communities.”
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