Newark-based Prudential Financial Inc. said it has contributed to a $7 million Series A equity investment in LendStreet Inc., a California company that specializes in consumer debt restructuring and consolidation.
The equity investment was accompanied by $110 million debt financing from both Prudential and San Francisco-based Community Investment Management.
Prudential joins financing firms Radicle Impact, Accion, the Center for Financial Services Innovation, Serious Change, Crunchfund, Kapor Capital and Cross Culture Ventures as equity and debt investors in the startup company.
LendStreet restructures debt for consumers in financial distress by providing technology-based solutions designed to increase credit score, reduce debt and improve savings. Since the company was founded last year, it said it has helped its customers reduce debt by an average of 40 percent and increase credit scores by an average of 100 points.