Financial wellness platform Best Egg has secured $225 million in a Series E capital round, the Delaware company announced in a news release Thursday (March 10).
Andrew Deringer, chief capital officer of Best Egg owner Marlette, said the funding will allow the firm to “fund our growing credit card business, explore expansions to our platform and evaluate additional strategic opportunities to create more value for our target consumer.”
The Series E was led by the Healthcare of Ontario Pension Plan (HOOPP), which manages over $80 billion in assets, along with investment funds advised by Davidson Kempner Capital Management LP, as well as an unnamed large international bank.
Best Egg founder and CEO Jeffrey Meiler said the funding reflects the success of Best Egg’s personal loan business and the potential of its Visa card and financial wellness tool, Best Egg Financial Health, which has more than 149,000 members.
The company said it had a record-breaking 2021, taking in $300 million in revenue and facilitating $4.6 billion in personal loans.
Read more: 64% of Consumers Lived Paycheck to Paycheck in January, up From 61% a Month Earlier
As PYMNTS noted recently, more people are turning to solutions like personal loans to bridge expense gaps and balance their finances as their savings safety nets shrink.
Our research has shown that the effects of having that safety net are clear, with a study finding that people who earn $50,000 to $100,000 per year and and still living paycheck-to-paycheck with difficulties paying bills reported an average savings of $2,360, versus $7,273 for those who have no trouble paying their bills.
PYMNTS also found the biggest gap in savings levels “between those earning less than $50,000 per year living paycheck-to-paycheck with difficulties paying their bills, who reported average savings of $788, compared to $4,369 for those without issues.”
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