Fintech startup and different credit score asset supervisor Viola Credit has closed its newest $700 million fund, which gives asset-based lending capital to fintech, proptech and insurtech startups.
If this fintech play reminds you of Silicon Valley Financial institution, assume once more. The latter gives company lending, also called enterprise lending. As a substitute, Viola gives lending capital to fintech lenders. So, for instance, for a corporation like Affirm, which gives installment plans to customers, Viola Credit score gives the lending capital to offer these receivables. One other instance is Market Finance, a tech-enabled SME lender within the U.Ok., which wants lending capital to finance loans.
As Ido Vigdor, basic associate at Viola Credit score, says: “There’s a disruption taking place in monetary companies. These are tech corporations backed by VCs however in addition they want monetary companions on account of their capital-intensive companies to be able to do that. We’re on the intersection by offering lending capital options to those new tech-based monetary options.”
The fintech sector boomed in 2021, with world fintech funding reaching a report $132 billion.
The large digital transformation happening proper now has given rise to non-bank and different lending corporations. In 2021, fintech lenders originated greater than $120 billion in loans.
Viola Credit score, will associate with fintech platforms throughout the U.S., Western Europe, U.Ok., Australia and New Zealand.
Opponents to Viola embody Victory Park Capital, Atalaya Capital and Pollen Avenue Capital within the U.Ok.
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