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Lending Works announces £3 million Series A investment round
We're very pleased to announce the conclusion of our Series A investment round, which has now raised its target of £3 million. This comprises a £2m contribution from NVM Private Equity (NVM) in early June 2016, which completed the round after earlier investments from an existing institutional shareholder.
The cash injection is another significant boost for Lending Works, given that we will soon be launching our Innovative Finance ISA (IFISA), in addition to confirming new partnerships, announcing key hires and introducing new loan products as part of our ambitious growth plans - plans which have already seen us become the UK’s third-largest consumer P2P lender despite only launching in January 2014.
“We’re delighted to announce the recent investment in our business by NVM Private Equity," commented Nick Harding, our founding CEO. "They bring significant experience in key areas including business scalability, risk and business development and we consider their backing to be a ringing endorsement of our rapid progress as a company. This latest investment comes at an exciting time for us too.
“We’re expecting to launch our new IFISA imminently, which will allow lenders to earn tax-free returns through our platform. Needless to say, it sets the foundations for continued growth which will be well supplemented - and driven - by this new investment.”
Growth and partnerships
NVM is an independently-owned private equity firm, specialising in SME investments typically between £2million to £10 million. Over the last three decades, it has invested in over 270 SMEs in the UK, and currently manages over £300 million in private equity funds.
The investment underpins the positive momentum for Lending Works, given that we launched a point-of-sale system for loans within the retail finance sector earlier this year. The expansion into retail finance is part of our strategy to focus on partnerships in order to grow the business and reach our lending target of £50 million during 2016.
“Our retail finance offering, coupled with successfully closing our Series A investment round is a show of intent on our part as we look to broaden our network with other partners," Nick added. "We see this as key to the exponential growth we are on track to achieve both in the short and medium-term, and we are looking forward to releasing some exciting new information regarding new loan products as a result of such agreements.
“Our customers come first at all times, and, as a lender, you can take great confidence from this investment round which ensures Lending Works has a robust balance sheet. You can also draw comfort from the fact that we've undergone the rigorous due diligence process that an institutional investor mandates before making an investment, hence validating our team, financials, compliance, software, systems and processes.
“Moreover, we plan to dedicate some of the capital from the latest investment round to further strengthening our team. Recruiting exceptional team members remains a key focus for us as we look to continue our journey in pioneering fair financial services that people love.”
Related articles:
- Brexit and Lending Works
- The latest on the Lending Works ISA
- Lending Works scoops treble glory at Moneywise Customer Service Awards
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