PowerPay, a King of Prussia, Pennsylvania-based home improvement financing fintech has hit a $1B milestone in loans originated on its platform as it eyes additional products and services, including insurance and other types of lending products.

Why should we care?
PowerPay, a 4-year-old company, benefited from a boom in home renovations during the pandemic. The company partners with a network of more than 7,000 contractors to offer home renovation loans for consumers. It benefited from the tightening up of the credit markets during the pandemic, according to Chief Operating Officer David Haas. “Since our model was designed in a unique way .. we were one of the few companies left for funding [during the pandemic],” he said in a recent interview. PowerPay, which said its business grew 600% during the pandemic, is now looking to other product areas to boost its revenue, including the rollout of a push-to-pay product for contractors so they’re paid more quickly than they would be through ACH; the launch of mortgages and home equity lines of credit; selling homeowners insurance; and possible forays into checking and savings accounts. PowerPay has limited outside its sources of funding (a $2M seed round from seven individual investors in the Philadelphia area) and it’s contemplating a bank charter and/or a special-purpose acquisition company (SPAC) merger that would take the company public. “I would think that maybe a discussion with a SPAC later this year would be not only poignant but more relevant,” said Mike Petrakis, PowerPay’s CEO.