Yendo, the company that created the first-ever vehicle-secured credit card, announced the closing of $150 million in debt financing led by i80 Group. The funding will fuel customer growth, introduce new products, and expedite the expansion of the company’s offerings across all 50 states.
Yendo will use the funding to grow originations on its platform, enabling the company to extend credit to more Americans at affordable rates. Along with the debt facility, Yendo has raised $15 million in equity from undisclosed strategic investors.
Yendo 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. And 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.
The card is now also available to customers who do not yet own their vehicle but choose to refinance their auto loan through Yendo. And as customers pay down their auto loans each month their Yendo credit card availability increases proportionally. This fills a major 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. And this deal is closing when banks have continued tightening their lending belts.
So far, Yendo has saved its customers over $50 million in interest and fees compared to alternative lending products. And Yendo is currently available in 40 states across the U.S. Last year, the company closed its Series A financing, led by FPV Ventures, and grew its business by over 700%.
KEY QUOTES:
“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.”
- Jordan Miller, CEO and founder of Yendo
“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.”
- Peter Frank, managing director at i80 Group
