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International P2P Lending Services – Loan Volumes January 2015

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Most major services grew the originated loan volume in January. Prosper, like Lending Club before, no longer makes data available for the recent month.  Funding Circle passed the milestone of 500M GBP lent since inception, while Auxmoney crossed 150M EUR. I added Investly and Mintos. I do monitor development of p2p lending figures for many markets. Since I already have most of the data on file I can publish statistics on the monthly loan originations for selected p2p lending services.
Investors living in markets with no or limited choice of local p2p lending services can check this list of marketplaces open to international investors.


Table: P2P Lending Volumes in January 2015. Source: own research
Note that volumes have been converted from local currency to Euro for the sake of comparison. Some figures are estimates/approximations.

Notice to p2p lending services not listed:
If you want to be included in this chart in future, please email the following figures on the first working day of a month: total loan volume originated since inception, loan volume originated in previous month, number of loans originated in previous month, average nominal interest rate of loans originated in previous month.

LendingRobot Raises 3M from Runa Capital

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Seattle based Lending Robot, a 3rd party tool for investors to automate bidding on Lending Club and Prosper has raised 3 million US$ form Moscow based VC Runa Capital. The founders Gilad Golan and Emmanuel Marot had initially created a solution to automate their own investments on Lending Club. The growing needs to automate such investments convinced them to develop this further in the publicly available service Lending Robot. Lending Robot is free for the first 10K managed investment and beyond that charges users a small yearly fee. To comply with regulation, Lending Robot registered with SEC as an Investment Advisor.

The main advantage of the service is that it bids for investors a high speed. This is crucial because bidding on Prosper and Lending Club is very competitive and the most sought loans are filled very fast.

Google and Lending Club Pilot Offering Loans to Businesses

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Today p2p lending marketplace Lending Club and Google launch a new pilot program in partnership to facilitate low-interest financing to eligible Google partners. The program leverages Lending Club’s ability to provide access to credit in a highly automated, cost-efficient manner, and allows Google to purchase the loans, thus investing its own capital in its partner network to drive business growth. Lending Club will service the loans.

Eligible Google partners will have access to financing with low interest and no fees, enabling them to invest in business development and other growth opportunities, hire additional staff and plan for future expansion.

“This first of its kind program enables Google to invest its own capital in the growth of its partners,” said Renaud Laplanche, founder and CEO of Lending Club. “This is a new delivery model for financial services; this program opens up many possibilities for Lending Club partners to enable credit for consumers and business owners.”

Google for Work has built a network of more than 10,000 partners in recent years, including resellers, consultants, and system integrators, which help Google distribute its applications and services. The company recently launched a new incentive program for partners, boosting the rewards for top performers. The partnership with Lending Club is part of this expanded incentive program.

Currently, the pilot program is available to Google reseller partners in the U.S. who meet certain eligibility criteria. Eligible partners can obtain two-year loans of up to $600,000 to invest in growth initiatives. With an interest-only structure in the first year and a fully amortizing second year, the loan payback schedule is designed to match the cash-flow profile of growth investments.

International P2P Lending Services – Loan Volumes December 2014

wiseclerk
Several p2p lending marketplaces managed to grow the loan originations in December despite the Christmas season. Especially Prosper had a record month.  I added one more service. I do monitor development of p2p lending figures for many markets. Since I already have most of the data on file I can publish statistics on the monthly loan originations for selected p2p lending services.
Investors living in markets with no or limited choice of local p2p lending services can check this list of marketplaces open to international investors.


Table: P2P Lending Volumes in December 2014. Source: own research
Note that volumes have been converted from local currency to Euro for the sake of comparison. Some figures are estimates/approximations.

Notice to p2p lending services not listed:
If you want to be included in this chart in future, please email the following figures on the first working day of a month: total loan volume originated since inception, loan volume originated in previous month, number of loans originated in previous month, average nominal interest rate of loans originated in previous month.

News Coverage of the Lending Club IPO

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Yesterday was a very exciting day for Lending Club and p2p lending as a whole. I must say I was awed when I saw the opening price of around 25 US$ as that put the company valuation around 9 billion US$. Looking through the coverage the excitement is certainly shared:

The venture capital companies that backed Lending Club will be excited too (see graphic).

The Position of Lending Club at IPO

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The long announced IPO of marketplace lender Lending Club is imminent now, with the first day of trading expected to be around Dec. 10th.

Lending Club will issue 57.7 million new shares priced in the range of 10 to 12 US$. On the upper end this means the company will have a valuation of around 4.4 billion US$. At the same time existing shareholders will offer 7.7 million new share for sale.
Lending Club did not forget it roots. At the begin of the astonishing growth curve it were the small retail investors that funded all the Lending Club loans. So now Lending Club has reserved 10% of the new shares and offered them to these retail investors through a ‘Directed Share Programs’ via Fidelity Investments. For each investor a certain amount of shares (mostly 350) was reserved and offered.

Aside from the IPO financials the big news is the strong position Lending Club has built in the p2p lending market:


Source of all images: Lending Club

Lending Club showed strong growth every quarter.

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