LoanStar Technologies, a Swarthmore, PA-based financial technology company focused on embedded lending, raised $28M in funding.
Backers included Sageview Capital, Launch Credit Union, TruMark Financial Credit Union, Ben Franklin Technology Partners of Southeastern Pennsylvania, and Monarch Strategic Advisors.
The company intends to use use approximately $12M of the investment, which closed in January, to expand its sales and marketing organization, continue investment into its market-leading technology platform, strategic partnerships, and strengthen its balance sheet in anticipation of future growth opportunities. It expects to close on the remaining amount (approximately $16M) in the next two months, which will be used to repurchase shares from early investors in the company.
Led by Andy Turner, CEO, and Craig Haynes, CIO, LoanStar specilaizes in banking technology, focusing on embedded lending services. Its MerchantLinQ platform empowers lenders to provide instant point-of-sale finance through local merchants, offering control over loan underwriting and branded products. The company enables lenders and merchants of to elevate their brand, expand their customer base, and empower new business growth through embedded lending and point-of-sale financing.
LoanStar serves over 55 lenders and maintains relationships with 7,000 merchants.
Commenting on the news, Andy Turner said: “We are beyond excited to partner with an experienced fintech investor like Sageview Capital, who recognizes the value that we have built and can help us execute our next phase of growth. We are also appreciative of the continued support from our existing investors, several of whom are great business partners on our mission to re-intermediate financial institutions into the digital lending process at the point-of-sale.”
FinSMEs
31/01/2024