Yendo secures $150m in debt financing to expand credit access across US

Yendo, the pioneer in vehicle-secured credit solutions, has successfully closed a substantial $150 million debt financing round led by i80 Group. This strategic financial influx aims to significantly broaden Yendo’s customer base, introduce innovative products, and accelerate the company’s expansion throughout all 50 states.

Broadening Financial Inclusion with Innovative Credit Solutions

Yendo will utilize the new funds primarily to enhance the origination growth on its platform. This expansion is poised to extend more affordable credit options to a larger segment of Americans, particularly those underserved by the traditional financial system. In addition to the debt facility, Yendo has also secured an additional $15 million in equity from various undisclosed strategic investors, bolstering its financial position and operational capabilities.

Founded in 2021 by Jordan Miller, George Utkov, and Daniel Ashy, Yendo introduced the first-ever vehicle-secured credit card, designed to offer prime rates to Americans historically excluded due to their credit scores. Yendo’s unique product allows customers to access up to $10,000 of revolving credit by leveraging the equity of their car. This solution not only fills a crucial gap in the market but also provides a pathway for consumers to build their credit.

The innovative credit card is available to individuals who may not fully own their vehicle but choose to refinance their auto loan through Yendo. As these customers continue to repay their auto loans, their credit availability on the Yendo card proportionally increases, enhancing their financial flexibility.

Addressing the Credit Crunch in the Lending Landscape

This financing round comes at a critical time when traditional banks have tightened lending criteria, with PitchBook reporting a nearly 37% decrease in debt deal volume to venture-backed companies in 2023, marking the slowest year since 2017.

Jordan Miller, CEO and founder of Yendo, emphasized the impact of the financing: “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. We have an aggressive roadmap for 2024, and this credit facility will allow us to focus on delivering the best products and experiences to our customers.”

Peter Frank, Managing Director at i80 Group, also commented on the partnership: “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. 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 and is currently available in 40 states across the U.S.

Yendo’s innovative approach to using vehicle equity as security for credit access represents a transformative step in financial services, especially for consumers traditionally marginalized by the credit system. This funding round is a testament to the viability and necessity of such solutions in today’s tightening credit market, potentially setting a precedent for similar financial products.