iwoca, one of the fastest growing SME lending platforms in Europe, has today announced a $20m Series B equity financing round. The round was led by Acton Capital Partners, the specialist German venture capital firm, and CommerzVentures, the corporate venture capital subsidiary of Commerzbank. Redline Capital and other existing investors also participated.
iwoca achieved over 250% year-on-year growth in loan issuance in the twelve months to June 2015, demonstrating that alternative lenders represent a key lever for economic growth as traditional banks have struggled to meet the funding gap. The alternative finance market in the UK is expected to jump to $7bn in 2015 up from $2.5bn in 2014
Vasile Foca, co-founder and Director of Talis Capital explained, "Since we led the Series A back in 2012, iwoca has developed a revolutionary risk model that can understand any small business and through great execution of its growth strategy, become Europe's leading Fintech lender. We are excited to retain a significant interest in the business and are delighted to welcome Acton and CommerzVentures as shareholders."
Christoph Rieche, co-founder and CEO of iwoca, said, "We're aiming to offer a flexible finance option to all of Europe's twenty million small businesses. Raising investment from Acton and CommerzVentures is a vote of confidence in iwoca and a sign of the growing interest not only of financial investors but also of leading banks in alternative fintech lenders. This will be crucial to increasing access to credit and supporting growth amongst European SMEs."
Matus Maar, co-founder and Director of Talis Capital added, "iwoca has redefined SME lending with a scalable, differentiated technology platform. Series B funding will see iwoca further capitalise on a sizeable European market opportunity and is a significant vote of confidence in the outstanding management team we backed in 2012."
Talis Capital is a private investment office based in London, specialising exclusively in direct Private Equity and Venture Capital deals. The tech venture arm, Talis Ventures, focuses on B2B business support services and intelligence via data analytics - mainly sold as SAAS. Talis Capital have completed over $350m of transactions since 2009.
iwoca is transforming small business lending by offering flexible credit facilities to the millions of SMEs that are underserved by banks. Its technology-driven risk platform draws on thousands of data points to make faster, fairer credit decisions, allowing iwoca to lend small businesses up to $150,000 within hours. With 7,500 transactions since its launch in 2012, iwoca is one of the fastest growing business credit providers in Europe. iwoca operates across the UK, Germany, Spain and Poland. iwoca is a founding member of Innovate Finance, the world's first industry body for FinTech.
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