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Online Lender Prosper Sees Valuation Plummet 70%

Source: SEC filings

Prosper, the second-largest online lending startup, is close to raising a new round of financing that will see its valuation cut by 70%, according to two people familiar with the matter. It is the latest sign of how the online lending industry has struggled after its rapid initial growth.

The new financing round for around $50 million will value the company at $550 million, down from around $1.9 billion when it last raised equity financing in 2015. The new investor is based in China, multiple people said, though the name couldn’t be learned.

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Still, even the most optimistic people close to the company admit that it is unlikely that Prosper will return to the exuberant days of 2015 when it launched itself into unicorn status. Rather, the goal is to continue to build a business that is sustainable.

Eric X commented on this article.
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