Key Takeaways
- Lendable raised £500 million ($670M) by selling securities backed by unsecured consumer loans
- The UK fintech has originated over £10 billion in consumer credit since 2014
- Company profits jumped 120% in 2025 as it prepares for US expansion
Lendable, the UK's largest personal loan issuer, closed a £500 million ($670 million) deal on Thursday by selling securities backed by its portfolio of unsecured consumer loans. The transaction marks a shift toward capital markets financing for the 10-year-old fintech, which doubled its profits last year and is now eyeing the US market.
Bloomberg reported the deal, citing unnamed sources familiar with the transaction. The securities are backed by loans to private individuals in the UK. Lendable did not respond to requests for comment.
Why securitization matters for Lendable
This funding approach signals Lendable's evolution from a startup dependent on venture capital to a mature financial institution with access to institutional debt markets. Securitization, the process of packaging loans into tradable securities, is how traditional banks fund lending at scale. For a digital-first lender, it represents credibility and lower cost of capital.
The company has originated more than £10 billion ($13.4 billion) in consumer credit since launching in 2014. It claims the top spot among UK personal loan issuers and ranked second in new credit card issuance last year.
The numbers behind Lendable's growth
Lendable's 2025 performance explains why investors are willing to buy securities tied to its loan book. Profits rose 120% to $155 million. Revenue jumped 90% to $608 million. The company issued more new personal loans than any other UK lender, including the high-street banks.
Co-founder Martin Kissinger told the Financial Times in May: "There are millions of people who use credit and most of that is done by big banks, and they do not do as good of a job as can be done. So we set out to build a tech company that would do it better."
US expansion on the horizon
Lendable is planning to enter the US market, a move reported in May. The American personal loan market dwarfs the UK's, but competition is fierce. Established players like SoFi, LendingClub, and Upstart have spent years building brand recognition and refining their underwriting models.
Lendable's pitch centers on speed and simplicity. Its platform uses AI and machine learning to underwrite loans, often delivering decisions in minutes. No paperwork, no branch visits, no hold music. Whether that's enough to differentiate in a crowded US market remains to be seen.
A different path from 2022
This securitization deal contrasts with Lendable's last major funding event. In March 2022, the company raised $275 million in equity at a $4.5 billion valuation. That capital came with different strings: investor expectations for growth, board seats, dilution.
Kissinger said at the time: "Our DNA from day one has been to bring transparency and fairness to consumer finance, and we are proud of the fantastic feedback we consistently receive from our customers."
By contrast, selling loan-backed securities raises capital without giving up equity. The tradeoff: Lendable must demonstrate consistent loan performance. If default rates spike, future securitizations become harder and more expensive.
What this means for fintech lending
Lendable's move reflects a broader trend. As venture capital has grown more selective since 2022, fintechs with performing loan portfolios are turning to debt markets. It's a more sustainable model than perpetual fundraising, but requires operational discipline and creditworthy borrowers.
For UK consumers, Lendable's growth pressures traditional banks to improve their digital lending experiences. For US consumers, it may soon mean another option when shopping for personal loans. Whether Lendable can replicate its UK dominance across the Atlantic is the question that matters most.
Logicity's Take
Lendable's securitization signals maturity, not just growth. Most fintechs at this stage are still burning equity capital or seeking additional venture rounds. By accessing debt markets, Lendable can scale lending without diluting founders or existing investors. The US expansion is ambitious given entrenched competitors like SoFi (which offers integrated banking) and Upstart (which licenses its AI underwriting to other lenders). Lendable's advantage will hinge on whether its UK-developed models transfer to American credit behaviors, a nontrivial challenge given different regulatory frameworks and consumer data sources.
Frequently Asked Questions
How did Lendable raise $670 million?
Lendable sold securities backed by its portfolio of unsecured consumer loans to institutional investors. This is called securitization, a common financing method for mature lenders.
Is Lendable profitable?
Yes. Lendable reported $155 million in profit for 2025, a 120% increase from the previous year, on revenue of $608 million.
When was Lendable founded?
Lendable was founded in 2014 in the UK. It has since originated over £10 billion in consumer credit.
Is Lendable expanding to the US?
The company announced US expansion plans in May 2026. No specific timeline or launch date has been disclosed.
How does Lendable differ from traditional banks?
Lendable operates entirely online, uses AI for underwriting, and promises faster loan decisions without paperwork or branch visits.
Another fintech M&A story showing how traditional finance players are acquiring AI capabilities
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Source: PYMNTS | / PYMNTS
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
