Prosper Records More Strong Growth in August

Prosper Aug 2014

When you look at the graph above you can see the kind of year that Prosper is having. Apart from a hiccup in February, they have been firing all cylinders this year with some of the most impressive growth we have seen, at least in this country.

The numbers for August are in and Prosper recorded $167.6 million in news loans issued, an increase of 9% over the previous month and up a staggering 434% from August 2013. In the past 12 months they have issued almost $1.1 billion in new loans. Not even the most optimistic prognosticators would have predicted numbers like this 18 months ago.

Below are some of the key stats for last month. Everything is remaining very consistent and the key metric average dollars issued per day continues to show healthy growth.

Average loan size: $13,236
Average dollars issued per business day: $7.6 million
Percentage 36/60 month loans: 66.3%/33.7%
Average interest rate: 14.93%
Percentage of whole loans: 90.3%
Average FICO score: 700

Note: If you are wondering about the Lending Club numbers they have unfortunately stopped updating their new loan data in real time. Their origination numbers and new loan data for the second quarter were made available last month. I will have a post out shortly digging into their numbers.

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Interesting
Interesting
Sep. 4, 2014 5:14 pm

widen the credit box and approval rate…grow like a weed…sell at a big price…get the hell outta dodge

Prescott
Sep. 4, 2014 5:44 pm
Reply to  Interesting

Bets on when “get the hell outta dodge” happens and what it looks like for the execs? 😉

Dan B
Dan B
Sep. 5, 2014 1:17 am
Reply to  Prescott

I’d say a gigantic ROI (30x-40x their investment) for the current owners/management considering they bought the company real cheap simultaneously diluting the original owners down to pretty much peanuts.

Assuming a semi successful LC IPO in the next 4-5 months, I’m guessing early 2016 if they decide to go the IPO route & sell a small chunk, or perhaps even earlier if they decide to just sell the whole thing while the euphoria is in the air for the mega home run.

Interesting
Interesting
Sep. 5, 2014 3:26 pm
Reply to  Prescott

Sequoia is the best in the biz. There is an obvious playbook here. Draft off LC valuation, sell before the economy/macro turns. I doubt Prosper is an independent entity past 2016. Good for them. Vermuts are studs.

Prescott
Sep. 5, 2014 5:18 pm
Reply to  Interesting

I’d agree with Interesting.. You’re missing Suber though!

Prescott
Sep. 5, 2014 5:43 pm
Reply to  Interesting

Sold for equity or cash?

Prescott
Sep. 5, 2014 12:34 pm
Reply to  Peter Renton

“Who knows what the plans for the Prosper executive team is” – “bets” – implies I’m looking for conjecture. Keep building the company – forever? No hints as to what they might want to do?

Dan B
Dan B
Sep. 5, 2014 12:32 am

So in tandem with the strong volume increases the whole loan percentage has gone from around 84% back in March to 88-89% last few months & now to 90.3% for August.

Prescott
Sep. 5, 2014 12:31 pm
Reply to  Dan B

I’m curious, are you having trouble investing your cash? If so, roughly what do your filters look like. Are they detailed or more index oriented and are they focused on say only the lowest grades?

My personal experience is that once invested it’s relatively easy to keep reinvesting. But I don’t have very specific filters.

Are there swarms of retail who are having trouble with index style investing in the lower tiers or are the complaints about not enough product all coming from people who are being pretty selective. I think it matters.