Yendo, the company that created the first-ever vehicle-secured credit card, secures $165million in debt funding led by i80 Group. The financing will be used to fuel customer growth, introduce new products and expedite the expansion of the company’s offerings across all 50 states.
Specifically, it will use the financing to fund the growth of originations on its platform, which will enable the company to extend credit to more Americans at affordable rates. In addition to the debt facility, it has raised $15 million in equity from undisclosed strategic investors.
It provides a vehicle-secured credit card with prime rates to the millions of Americans who have historically lacked access to the financial system because of their credit score. Through Yendo, underserved consumers can tap into the equity of their car to gain access to up to $10,000 of revolving credit at interest rates comparable to unsecured super-prime credit cards.
Today, the card is also available to customers who do not yet own their vehicle but choose to refinance their auto loan through Yendo. As customers pay down their auto loans each month their Yendo credit card availability increases proportionally.
This fills a gap in the market by giving consumers who otherwise might not be approved for credit the opportunity to leverage one of their most valuable assets to enter the financial system and start building their credit.
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This deal is closing at a time when banks have continued to tighten their belts on lending. According to PitchBook, debt deal volume to venture-backed companies in 2023 was down nearly 37% from the year prior¹, making it the slowest lending year since 2017.
Jordan Miller, CEO and founder of Yendo said, “We’ve proven there’s a need for a product like Yendo in the market and this round of debt financing from i80 Group will enable us to expand access to affordable credit to more Americans in more geographies, We have an aggressive roadmap for 2024 and this credit facility will allow us to deliver on our mission and focus on what matters most – delivering the best products and experiences to our customers.”
Peter Frank, managing director at i80 Group said, “We’re thrilled to partner with Yendo, they are addressing an overlooked segment of consumer credit with an innovative product that allows underserved borrowers improved access to affordable credit through their vehicle, Jordan and the Yendo team have developed a unique offering that creates a win – win, we’re excited to partner with them to scale it.”We believe everyone should have equitable access to affordable credit.
About Yendo
Leveraging ML/AI powered customer onboarding, Yendo is the world’s first vehicle-secured, credit card. Yendo’s product is 95% cheaper than the non-bank financial products that Americans spend $45bn on each year.
