Viola Credit closes $700M fund to provide asset-based mostly lending to fintech startups – TechCrunch

Fintech startup and substitute credit history asset manager Viola Credit has closed its most recent $700 million fund, which gives asset-centered lending capital to fintech, proptech and insurtech startups.

If this fintech perform reminds you of Silicon Valley Financial institution, believe again. The latter presents company lending, also recognized as enterprise lending. As a substitute, Viola offers lending capital to fintech loan providers. So, for case in point, for a business like Affirm, which supplies installment programs to people, Viola Credit provides the lending cash to present these receivables. Yet another instance is Industry Finance, a tech-enabled SME financial institution in the U.K., which needs lending capital to finance loans.

As Ido Vigdor, common spouse at Viola Credit, suggests: “There is a disruption taking place in monetary providers. These are tech firms backed by VCs but they also need monetary associates thanks to their cash-intensive corporations in purchase to do this. We are at the intersection by supplying lending capital options to these new tech-based mostly monetary solutions.”

The fintech sector boomed in 2021, with global fintech funding reaching a file $132 billion.

The massive digital transformation heading on correct now has provided rise to non-financial institution and different lending providers. In 2021, fintech loan providers originated far more than $120 billion in financial loans.

Viola Credit history, will associate with fintech platforms across the U.S., Western Europe, U.K., Australia and New Zealand.

Rivals to Viola include Victory Park Money, Atalaya Money and Pollen Avenue Money in the U.K.