Earnest's Scheme to Make Banking Fun Just Won $275 Million
The slug of capital will help it open new fronts in a fight with old-fashioned banks.
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Louis Beryl, founder of student-loan startup Earnest, likes to say his company is focused on relationships, not just profit. That said, plenty of money is coming his way. Earnest announced on Tuesday that it would receive $275 million in financing, comprising a $75 million equity stake led by Battery Ventures, along with $200 million in lending capital from New York Life and an unnamed institution.
The sizable war chest will help Earnest take the fight to incumbent banking giants on more fronts as the company builds out a broad spectrum of financial services, not just student loans and personal loans. As part of that push, Earnest will more than double its 160-person head count.