Welcome to the AltFi Global Newsletter - the leading forum for analysis and discussion of the alternative finance space.
Another big week in the world of Alternative Finance: plenty of news on platforms growing their operations this week so the theme is expansion.
Starting with Europe:
Lendico announced its planned expansion into Brazil - starting another chapter in the platform's growth plans. Starting in 6 different countries, the platform ended up leaving Spain, Poland and S. Africa. Whilst Lendico was expected to focus on its core markets, a €20m investment has led the platform to look to Latin America. AltFi expects further international expansion to follow.
New entrant TWINO has offered the latest innovation in the alternative finance space. The Baltic region is home to a number of platforms already, however, the newest entrance has made quite a splash by claiming to "completely minimising investor risk" . TWINO has taken the unusual step of offering a "buyout guarantee", meaning they will buyout the investor on any loan that falls more than 60 days behind repayment schedule.
Over into the US, the small business lending specialist LiftForward has secured $250m in credit facilities from investors GLI Finance and Varadero Capital. The investment comes after LiftForward has witnessed a surge in loan requests over the past couple of months. The injection allows LiftForward the capacity to play within its own marketplace.
US consumer lender Prosper has announced that the previous three months have seen them originate a little short of a billion dollars - $912.4m to be precise. Growth continues to look strong, after the platform doubled total lending since October 2014 - when it passed the $2bn mark.
An agglomeration of brands has led to the creation of Capify - offering business loans and Merchant Cash Advances to smaller business in the US, Canada, UK and Australia. CEO David Goldin told AltFi that the move will allow better international recognition and will improve Capify's ability to attract top talent.
The US Treasury has announced that it is opening a study into the lending practices of the P2P sector. Antonio Weiss - counsellor to the Secretary at the US Treasury Department spoke about the potential for expansion in the sector and the opportunity available. He also highlighted the Treasury's desire to better understand the risks of the space.
Elsewhere, Israeli lender - Blender - has announced a $5m investment, led by US VC firm Blumberg Capital. Having made its name in Israel - which CEO Aviv argues suffers from an overly concentrated market - Blender is expanding operations out internationally, looking to Latin America and Western Europe.
The People's Bank of China has announced new policy measures and regulatory propositions in the first step towards cleaning up the P2P market. The new introduction, made up of six policies and eight regulations, aims to restrict fraud and other malpractice, whilst encouraging the expansion of P2P markets and further benefiting small companies that have been abandoned by big banks.
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