Lending Club raises $115 million, buys Springstone for $140 million

Posted Apr 17, 2014

Lending Club is an online market company that connects borrowers and loan providers with each other. Lending Club has raised $115 million in funding and has acquired Springstone for $140 million in cash and stock.

The $115 million in funding was $50 million in debt financing and $65 million in a new equity round from funds and accounts managed by T. Rowe Price and BlackRock. The entirety of the newly secured $115 million was used for the cash spent on buying Springstone. The other $25 million was in Lending Club stock.

Springstone gives loans and payment plans to individuals that are seeking elective medical treatments and need help paying for their children’s private education.

Lending Club generates revenue by charging borrowers a loan origination fee, which is at around 4%. Lending Club has raised over $300 million in equity and debt from Google Capital, Kleiner Perkins, and several others.