OnDeck files for IPO

By AltFi on Tuesday 11 November 2014

Alternative Lending

OnDeck plans to raise $150 million through an IPO that is expected to happen later this year.

The company plans to raise $150 million in its filing, although that is a placeholder amount used to calculate registration fees and will likely change. OnDeck first announced that it was going public in August. The offering could value the business at about $1.5 billion. OnDeck has now filed an S-1 registration statement with the SEC for a proposed public offering of its common stock.

Under the JOBS Act, companies with revenue below $1 billion are allowed to keep filings confidential until they are ready to market the shares to potential investors. For the first half of the year, OnDeck Capital’s revenue rose to $64.5 million from $24.3 million, while its loss widened to $14.4 million from $13.7 million.  

The platform has facilitated over $1.5 billion in loans for almost 700 different industries in all 50 states, including restaurants, retailers, auto repair shops, healthcare professionals, HVAC contractors and many other service providers. 

OnDeck raised $77 million earlier this year in a funding round led by Tiger Global. Other investors currently include venture-capital firms and industry executives, including Google Ventures, Institutional Venture Partners, PayPal co-founder Peter Thiel and former American Express Co. CEO James Robinson III, who is an OnDeck board member.

This filing follows the IPO announcement of Lending Club and the suggestions that SoFi, a student loans provider, will go public next year. There is strong investor appetite for this sector and so these offerings should be well received.  

OnDeck has followed the lead of Lending Club by applying to list on the New York Stock Exchange. Both companies have shunned listing on the NASDAQ, which is typically seen as a more traditional place to launch tech-based IPOs. The choice may be seen as something of a deliberate statement by OnDeck, as it seeks to define itself as a finance-first company. 

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