Lenddo, a New York based lending startup, has raised $8 million in Series A funding round. Its investors include Accel Partners, Blumberg Capital, Omidyar Network, iNovia Capital, and Metamorphic Ventures and angel investors Geoff Judge, David Kidder, Scott Heiferman, and Barry Silbert. Lenddo’s aim is to provide support for the middle class in emerging countries.
Lenddo is a cross between a traditional bank and Facebook. Individuals in need of loans sign up on Lenddo’s sites and invite other to sign up and “add them as friends”, just like in Facebook. As the user adds friends, he builds “reputation score”. This metric is the basis for their credit worthiness.
Lenddo’s creators Jeffrey Stewart and Richard Eldridge were inspired by the lending models of the 1900s, where one gets a loan based on their reputation in the community, rather than their credit score.
The one-year-old startup was part of the inaugural FinTech Innovation Lab, a new 12-week program sponsored by the New York City Investment Fund and Accenture.
Lenddo’s membercount doubles every few months. The company has also expanded services in 35 countries. It currently gives microloans in the Philippines and Columbia. The company also said that today it plans to use the recent funding to expand into other markets in Asia and Latin America.