Earnest has raised a $75m Series B led by Battery Ventures, in addition to $200m in debt from a syndicate of insurance companies.
Earnest is part of a growing trend towards tailored data driven lending decisions. Student loans is one of the highest growth areas for Earnest.
This is the second large growth equity round in fintech this week, following Ebury raising $83m from Vitruvian. Fintech is continuing to attract significant interest from the investment community.
With a whopping $275 million in equity and debt financing, the next-generation lending company Earnest now has the firepower and strategic partners to become a more full-service financial services firm. The lending segment of the financial services industry has been one of the areas that has attracted the most interest from venture investors with mature companies like SoFi raising a massive $1 billion round from Softbank Capital earlier this Fall and younger lenders like CommonBond raising $35 million in the same period. Earnest’s $75 million in equity was led by Battery Ventures and the company received another $200 million in debt from a syndicate of mostly undisclosed insurance companies led by New York Life.