Debt restructuring company Lendstreet receives $7m funding
US-based Lendstreet has just closed a $7 million series A equity round, led by Prudential Financial and Radicle Impact.
Prudential and Radicle join Lendstreet’s existing investors Accion, the Centre for Financial Services Innovation (CFSI), Serious Change, Crunchfund, Kapor Capital, and Cross Culture Ventures in participating in the round.
The company has also raised $110 million in debt financing from Prudential and Community Investment Management (CIM).
Lendstreet’s service restructures debt for consumers experiencing financial hardships, overall reducing consumer debt, increasing credit scores, and improving savings.
The company claims to have helped reduce customer’s debt by nearly 40% and improve their credit score by an average of 100 points.
“These investments will enable us to scale our platform and reach more consumers who are struggling with too much debt,” says Jerry Nemorin, founder and CEO.
Prudential also says it aims to help those underserved by traditional financial tools, and works to bring financial security within reach of all Americans, through investments of both capital and talent.
“Many Americans are living paycheck to paycheck and don’t have the adequate resources to withstand a financial shock,” says Miljana Vujosevic, VP of impact investments at Prudential. “Too many consumers have no choice but to turn to products that don’t offer a viable, comprehensive, trustworthy solution.”
“Understanding your options to pay down debt and rebuild your credit is not easy. Lendstreet is giving overbanked consumers a more manageable, transparent and sustained path to restructuring debt and improving their financial health,” says Tom Coombs, co-founder and VP of product development at Lendstreet.