LendStreet, Inc., an Oakland, CA-based online consumer debt restructuring and consolidation platform, closed a $7M Series A equity funding.
The round was led by Prudential Financial and Radicle Impact, which joined existing investors Accion, the Center for Financial Services Innovation (CFSI), Serious Change, Crunchfund, Kapor Capital, and Cross Culture Ventures. In conjunction with the funding, Miljana Vujosevic, Vice President of Impact Investments, and Catha Groot, Principal at Radicle, joined LendStreet’s board.
The company, which has also raised $110m in debt financing from Prudential and Community Investment Management, intends to use the funds to scale the platform and reach more consumers.
Led by Jerry Nemorin, Founder and CEO, LendStreet provides consumers in financial distress with technology-based solutions and resources to reduce debt, increase credit scores, and improve savings.
The company works with other financial organizations to negotiate discounts with creditors on behalf of individuals in financial distress. Their debts are restructured as a loan with lower, fixed and affordable payments that enable consumers to rebuild their credit.
LendStreet says that, since its inception, has helped customers reduce their debt by nearly 40% and improve their credit score by an average of 100 points.