DALLAS--(BUSINESS WIRE)--Yendo, the company that created the first-ever vehicle-secured credit card, today announced the close of $150 million in debt financing led by i80 Group. The financing will be used to fuel customer growth, introduce new products and expedite the expansion of the company’s offerings across all 50 states. Specifically, Yendo will use the financing to fund the growth of originations on its platform, which will enable the company to extend credit to more Americans at affordable rates. In addition to the debt facility, Yendo has raised $15 million in equity from undisclosed strategic investors.
Yendo provides a vehicle-secured credit card with prime rates to the millions of Americans who have historically lacked access to the financial system because of their credit score. Through Yendo, underserved consumers can tap into the equity of their car to gain access to up to $10,000 of revolving credit at interest rates comparable to unsecured super-prime credit cards. Today, the card is also available to customers who do not yet own their vehicle but choose to refinance their auto loan through Yendo. As customers pay down their auto loans each month their Yendo credit card availability increases proportionally. This fills a gap in the market by giving consumers who otherwise might not be approved for credit the opportunity to leverage one of their most valuable assets to enter the financial system and start building their credit.
This deal is closing at a time when banks have continued to tighten their belts on lending. According to PitchBook, debt deal volume to venture-backed companies in 2023 was down nearly 37% from the year prior¹, making it the slowest lending year since 2017.
“We’ve proven there’s a need for a product like Yendo in the market and this round of debt financing from i80 Group will enable us to expand access to affordable credit to more Americans in more geographies,” said Jordan Miller, CEO and founder of Yendo. “We have an aggressive roadmap for 2024 and this credit facility will allow us to deliver on our mission and focus on what matters most – delivering the best products and experiences to our customers.”
“We’re thrilled to partner with Yendo, they are addressing an overlooked segment of consumer credit with an innovative product that allows underserved borrowers improved access to affordable credit through their vehicle,” said Peter Frank, managing director at i80 Group. “Jordan and the Yendo team have developed a unique offering that creates a win – win, we’re excited to partner with them to scale it.”
To date, Yendo has saved its customers over $50 million in interest and fees compared to alternative lending products. Yendo is currently available in 40 states across the U.S. In 2023, the company closed its Series A financing, led by FPV Ventures, and grew its business by over 700%.
About Yendo
Founded in 2021 by Jordan Miller, George Utkov, and Daniel Ashy, Yendo is the first-ever vehicle-secured credit card created for the millions of Americans who have historically lacked access to the financial system because of their credit score, or lack thereof. All customers need to get started with Yendo is a smartphone and a car. In less than 10 minutes, consumers can get up to $10,000 in revolving credit at a fixed, affordable rate, agnostic of their credit score. To learn more about how Yendo is making finances more accessible visit https://www.yendo.com.
About i80 Group
i80 Group is an SEC-registered, global investment firm that was founded in 2016. The firm provides asset-based investments that help companies scale through critical growth milestones. i80 Group manages approximately $1.6bn, with headquarters in New York, and additional offices in San Francisco and London. For more information, please visit www.i80group.com.
¹PitchBook. (Q4, 2023). Q4 Venture Monitor. Venture debt completes slowest lending year since 2017 [Report].
