Lendorse targets its offering primarily at international students who want to study in Europe and build their careers afterward. The solution of choice is what the Munich startup calls 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, they give a portion of their future income over a defined period. Thus, it is not a classic loan with a specific amount, interest rates, and payment deadlines. However, the funding amounts, percentages, and monthly payments specified in the ISA are structured so that Lendorse profits from the agreement.
The startup advertises that it does not require creditworthiness, collateral, or co-signers. This makes the offering particularly attractive for those rejected by traditional lenders. And a minimum income threshold ensures that no contributions are due if customers earn little or lose their income entirely.
Lendorse secures debt capital line of ten million euros
As Finance Forward first reported, the Munich startup has now secured financial support itself. Swiss i2 Group is providing Lendorse with a debt capital line of ten million euros to expand its business further. So far, the fintech has issued loans totaling 200,000 euros according to its own statements. The funds came from Techstars, Vealo Ventures, and the Earlybird Vision Lab, which are invested in the startup. The number of loans issued has been deliberately kept small to test the model, according to Lendorse. The new funds are now to flow into 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 Czech online supermarket Rohlik. His co-founder Avdeev worked for Russian Sberbank before founding his first startup in London and early-stage investor Contrivance Ventures.
