LendKey, a provider of software to banks and credit unions, raised $13 million of Series C funding, which it plans to use to expand its services, staffing and office space.
The funding round, announced Thursday, consists of $8 million in equity and $5 million in debt financing.
“This new round of funding will help support this growth allowing us to meet the strong bank and credit union demand for our service,” LendKey CEO Vince Passione said in a press release.
The round was led by Portland, Ore.-based North Atlantic Capital and included each of LendKey’s previous investors including DFJ, Updata Partners, Gotham Ventures and TTV Capital.
"With more than a dozen bank investors in our current fund, this is a great fit for us," Mark Morrissette, managing director at North Atlantic Capital, said in a press release.
LendKey’s clients include WSFS Bank, Navy Federal Credit Union and McGraw-Hill Federal Credit Union. The New York-based company helps lenders in private student loans, student loan refinancing, and auto and home improvement loans.
"Traditional financial institutions are now more than ever adapting to evolving customer needs to remain competitive and better reach millennials,” Passione said. “LendKey empowers these institutions to compete in today's lending market by digitizing their loan businesses.”