Lendorse is primarily aimed at international students who want to study in Europe and then pursue a career. The means of choice for this is a solution that the Munich startup known as an "Income Share Agreement" (ISA). This is a contractual arrangement in which the startup provides students with funds for their education-related expenses. In return, students give up a portion of their future income over a specified period of time. Thus, it is not a traditional loan with a fixed amount, interest rate, and payment terms. However, the funding amounts, shares, and monthly installments specified in the LSA are such that Lendorse emerges from the agreement with a profit.
The startup advertises that it doesn't require any credit score, collateral, or co-signers. This makes the offer particularly attractive to those rejected by traditional lenders. A minimum income threshold is also intended to ensure that no premiums are due if customers earn little or lose their income entirely.
Lendorse secures debt capital line of ten million euros
How Finance Forward As first reported, the Munich-based startup has now secured its own financial support. The Swiss i2 Group is granting Lendorse a debt capital line of ten million euros to further expand its business. So far, the Fintech According to Lendorse, the company has granted loans totaling €200,000. The funds came from Techstars, Vealo Ventures, and Earlybird Vision Lab, which are involved in the startup. The number of loans granted so far has been deliberately kept small to test the model. The new funds will now be used for additional student loans.
The startup was founded in 2022 by Björn Wolf and Evgenii Avdeev. Wolf has a consulting background and spent several years at McKinsey. Before founding his own startup, he most recently served as CEO of Knuspr, the German branch of the Czech online supermarket Rohlik. His co-founder, Avdeev, worked for Russia's Sberbank before founding his first startup and the early-stage investor Contrivance Ventures in London.
