Google drops cash into Lending Club for minority interest
The search giant takes a minority stake in the company, which hooks up people who need cash with those who are willing to dole it out.
Google has dropped a significant investment into loan-pairing company Lending Club, the companies announced today.
Lending Club announced today that Google has invested in its operation to take a minority stake in the company. Lending Club didn't say exactly how much Google invested, but did say that it was part of a $125 million round of financing. Google and another investor, Foundation Capital, acquired shares from existing investors.
Since its founding in 2007, Lending Club has been growing significantly. The company facilitates loan transactions between those who need cash and those who are willing to dole it out. Lending Club claims that over $1.65 billion in personal loans have been issued through its platform, including $350 million in the last quarter, alone. It focuses only on "high-credit-quality borrowers."
It's not immediately clear why Google wants to have a stake in Lending Club. The search giant issued a statement on the investment, saying only that it was "excited" to join the team. Lending Club CEO Renaud Laplanche said that the Google partnership should help his company do a better job of "serving our customers."