Geographical coverage: Philippines, Colombia, New York, MexicoLenddo
Year: 2011

  • Lenddo started lending its own funds to individuals, using a proprietary credit scoring methodology
  • Once its scoring methodologies became more sophisticated, it decided to phase out from its B2C business and concentrate in its B2B arm – selling customer identification and alternative risk scoring systems for several businesses, focusing on Financial Institutions and Telecom companies
  • Lenddo adopts a community-based approach to risk, by determining the creditworthiness of individuals based on their social networks.
  • Lenddo utilizes up to 12,000 data points linked to platforms such as Facebook, Twitter, Gmail and LinkedIn to create a Lenddo score (example shown below), which is then used by financial institutions to make informed loan decisions to people for whom a traditional creditworthiness check is not suitable

Lenddo score
 

Value Proposition 

  • Lenddo’s credit scoring model is based on powerful algorithms that track data such as the kind of products and restaurants an individual and his friends tweet about, career profiles of one’s Facebook friends, one’s tagged photos along with other social media interactions
  • Lenddo successfully validated its credit scoring model by directly issuing loans to emerging markets consumers (Mexico, Philipines and Columbia), purely based on their Lenddo score. These results were achieved with low single digit default rates that are in line with the default rates of the microfinance industry
  • For consumers of developing countries, especially those without any credit history or credit rating, Lenddo’s system provides them with a great opportunity to gain access to credit facilities in exchange for their social media data
  • By providing financial institutions with a predictive credit score for a group of consumers who are either barely covered by the credit bureaus or have no credit histories, Lenddo is creating a  huge untapped target market for lenders
  • Lenddo’s services are built around cloud-based APIs

How does Lenddo work?

Key figures

  • Customer outreach [individuals assessed, 2015]: >500,000
  • Funding [2015]
    • Total: USD 14 million, excluding most recent Series B in October 2015 (undisclosed amount)
    • Key investors: Accel Partners, Blumberg Capital, iNovia, Metamorphic and Omidyar Network, Life.SREDA
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