Online marketplace Funding Circle has announced that they have raised $150m in funding, with the money being used to transform the firm into Britain’s largest small business lender.
Funding Circle is primarily aimed at small to medium sized enterprises that are unable to gain funding from traditional lenders. Alternative lenders regularly use platforms like Funding Circle as they can get a large return on their investments.
According to the Bank of England, Funding Circle was the fifth-largest lender to businesses in Britain last year. The Firm aim to lend $1bn over the next 12 months.
In total, Funding Circle has raised $288 million in revenue. In this recent funding round, investors include DST Global, Baillie Gifford, a fund managed by BlackRock, Sands Capital Ventures and Temasek.
‘‘Today’s news is the next step on our journey to creating a sustainable, category-defining business in a multi-billion dollar global market, where businesses will come to the marketplace to borrow from all types of investors. This investment, alongside prudent risk management, will ensure Funding Circle’s long term future, ’’ said Samir Desai, CEO and co-founder of Funding Circle