LendKey, a lending technology firm that serves credit unions and other lenders, said it has raised an additional $12.5 million in venture funding.
Formerly known as private student lending solutions provider Fynanz, LendKey, which is based in New York and Cincinnati, said the Series B funding was led by new investors Updata Partners and TTV Capital, as well as existing investors Draper Fisher Jurvetson and Gotham Ventures.
Founded in 2008 as a private student lending platform for financial institutions, LendKey said it will use the funds to expand its lending platform into new asset classes and accelerate the growth of its lending clients.
The new funding is in addition to the $9.5 million in venture funding received by LendKey during its Series A round of financing, bringing the total capital raised by the company to $22 million, the company said.
LendKey has grown to 250 lending partners, including CUNA, and $400 million in private student loan and private student loan consolidation originations in the past three years, said Vince Passione, CEO of LendKey.
“In a market where federal student loans cover only a fraction of the cost of higher education, LendKey has grown substantially by allowing financial institutions to reach students in need of private loans,” said Carter Griffin, general partner at Updata Partners.
He added, “Looking ahead, Updata believes there are virtually unlimited opportunities to connect lenders and borrowers through LendKey's cloud lending platform.”