Online peer-to-peer banker LendingClub files for IPO

Reuters News
Posted: Aug 27, 2014 1:42 PM

(Reuters) - LendingClub Corp, the world's largest online marketplace connecting borrowers and investors directly, filed with U.S. regulators for an initial public offering of common stock.

Peer-to-peer lending allows investors to lend directly to individuals and businesses, cutting out banks via low-cost online platforms.

LendingClub has facilitated over $5 billion in loans since it was launched in 2007.

The company's revenue more than doubled to $87.3 million in the six months ended June 30 from a year earlier.

The industry became prominent during the global financial crisis, plugging a hole left by cash-strapped banks' reluctance to lend to small businesses.

LendingClub's investors include Norwest Venture Partners, Foundation Capital LP, Morgenthaler Venture Partners and Canaan LP.

Morgan Stanley, Goldman Sachs & Co and Citigroup are the underwriters for the offering, the company said in a preliminary prospectus filed with the U.S Securities and Exchange Commission on Wednesday. (

The company filed to raise $500 million from the offering, but did not reveal how many shares it planned to sell or their expected price.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

(Reporting By Sudarshan Varadhan and Neha Dimri; Editing by Simon Jenningsand Sriraj Kalluvila)