Fintech company PowerPay has raised $119m through a securitization. The deal funds consumer loans for home improvements and elective medical purchases. This is PowerPay’s first public securitization.

PowerPay operates in the US, was established in 2018 and has 150 employees. The company provides point of sale financing. It has built a network of over 12,000 merchants to distribute the loans.

PowerPay provides four loan verticals: home improvement loans, elective healthcare (dental, vision, cosmetic, fertility, etc.) loans, recreational vehicles (jet skis, mobile homes, etc.) loans, and solar panel loans.

The transaction, PowerPay Issuance Trust 2024-1, was funded by 17 institutional investors. Securitization allows fintech companies to access low cost, diversified funding at scale. We will continue to see more transactions of this type – as fintech companies grow, interest rates increase, and private debt (that has been used to fund fintech loan books) becomes more restrictive.