Terms of the transaction were not available from company representatives. LendingTree, a site that connects consumers with a network of lenders for loans, plans to use the capital to intensify its marketing efforts aimed at building consumer and business awareness.
The move comes as financial services, including banks, brokerage houses, and credit card companies, try to find new ways to use the Internet to cut costs while enticing consumers with tailored benefits.
LendingTree, founded in 1996, said it has experienced steadily exponential growth in 1999 with the number of lenders on the its network growing from 9 to over 80. The company said it currently processes over $65 million a day in loan demand from consumers seeking home mortgages, home equity, automobile financing, personal loans and credit cards.
Last year, Priceline.com and LendingTree formed a partnership that will allow consumers to name their interest rates and terms when shopping for home mortgages on the Internet.
Other investors include Capital Z and Marsh & McLennan.