New Y Combinator-incubated startup is entering the fintech scene today, aiming to disrupt payday loans and consumer finance. LendUp, is leveraging technology to redefine the payday lending experience, bringing a new level of innovation and transparency to an industry that desperately needs disruption. And the San Francisco-based startup is launching today with funding from an impressive group of VC firms and angels including Y Combinator, Kleiner Perkins, Yuri Milner’s Startfund, Andreessen Horowitz, Google Ventures, Thomvest Ventures, Kapor Capital, Bronze Investments, Founders CoOp, Data Collective, Garry Tan, Harj Taggar, Alexis Ohanian and others.
At a basic level, LendUp is direct lender and has created a way to use small-dollar loans as an opportunity for consumers to build credit and move up the financial ladder. Consumers who have poor or no credit can apply for and receive small-dollar, short-term loans (up to $250 for up to 30 days). But it doesn’t stop there. The company’s mission is to use small-dollar loans as a way to help customers build credit and move up the financial ladder.