Across the pond, the US marketplace lending space also appears to have emerged from its year-long malaise. With the industry leading platform Prosper, announcing significant origination growth. Prosper’s origination came in at up 32 per cent quarter-on-quarter and 74 per cent year-over-year.
These results cap off a string of heartening updates from the major players in the US. LendingClub, OnDeck, and SoFi – arguably the three biggest players alongside Prosper – have each reported origination growth.
David Kimball, CEO of Prosper Marketplace said “ … growth was driven by strong interest from borrowers, our partnership with a consortium of investors, and innovations from our talented team.”
The growing interest in the asset class from institutional investors for both debt and equity in fintech lending platforms has been a strong feature of recent years with the second quarter of 2017 seeing UK firms such as Zopa and Ratesetter among the largest global fundraisers achieved in the disruptive world of alternative lending.
While P2P and marketplace lending is now more than a decade old, the real acceleration period for the industry has come in the past five years. Some players are now starting to become profitable many are still tapping private markets to raise equity capital in order to facilitate their growth.
The three months of this year, from April to the end of June, was a particularly active period for fundraising in the industry. The top ten deals to marketplace lending companies received a combined investment total of $658 million in the second quarter of the year, which represents 84 per cent of the total capital committed to deals in the sector, according to data provider Fintech Global.