Prosper Acquires BillGuard

sf_cityThere was a time when peer-to-peer lending networks were considered fringe. Once purely described as marketplace lending, these networks allow nonbank institutions to lend to people and businesses online. But the way consumers’ access loans have evolved since then. For years these networks have grown in loans underwritten. In JP Morgan’s April letter to shareholders, CEO Jamie Dimon warned about Silicon Valley’s encroachment in traditional banking. With revenue growth draws competition and peer-to-peer lenders are beginning to find ways to differentiate by offering complementary services.

Peer-to-peer lending giant Prosper Marketplace acquired Israel-based BillGuard, a crowdsourced security app for personal financial management. Numerous media sources reported the deal price to be US$ 30 million in cash with some equity. Prosper did the deal for a number of valid reasons. The first reason is BillGuard’s foreseeable integration onto Prosper’s platform, offering an ancillary service to its customer base. Second is access to diversified talent. Third, BillGuard touts a community of 1.3 million registered users and flags unauthorized charges – giving Prosper exposure to the cybersecurity market and helping indirectly lower default rates (better cash management).

In January 2015, Prosper acquired American Healthcare Lending, a patient-financing platform, for US$ 21 million.

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