San Francisco based nonprime online lender LendUp has raised a $47.5m Series C round, led by Y Combinator. Valuation on the round was $500m. The company was part of the Y combinator batch in Winter 2012 and is looking to begin its push into credit cards with its new L Card. This is the 3rd time this year that lendup has raised money , taking on $100m in debt and a $50m Series B in January.
The typical balance on LendUp’s L Card is between $300 and $1,000, which carries an annual percentage rate of between 19 percent and 29 percent. There can also be an annual fee of up to $60 a year. The L Card has a companion smartphone app, which customers can use to instantly halt charges in case of loss or theft, and a financial health meter that shows how much credit they have left. “We have no interest in keeping people in debt,” Orloff told TechCrunch.