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iwoca secures GBP 200 million in new funding round

Tuesday 12 November 2024 10:38 CET | News

UK-based small business lender iwoca has announced that it obtained GBP 200 million in a new funding round. 

Provided by Citi and Waterfall Asset Management, the GBP 200 million financing is set to support iwoca in scaling its business reach and further expanding into medium-sized businesses by doubling the size of its core product, the Flexi-Loan, to GBP 1 million. Since its launch, iwoca offered GBP 3 billion in loans to small and medium-sized enterprises (SMEs) in need of working capital in the UK and Germany. In addition, the company has been scaling its share of the lending market via Embedded Finance technology and increasing its partner number, enabling businesses to access loans via a range of platforms including Qonto and Countingup.

iwoca secures GBP 200 million in new funding round

Iwoca’s past fundings

In addition to this funding, iwoca obtained in May 2024 a GBP 270 million package of debt funding, which took the total gross investment in the firm to GBP 1 billion. At that time, the company gained GBP 150 million in debt financing commitments from Citibank and Insight Investment to assist its expansion in Germany, and GBP 120 million from Barclays and Värde for the UK business, as it responded to mounting demand for finance from small businesses.

Before this, iwoca secured a GBP 200 million funding line with initial commitments from Barclays and Värde Partners. The announcement followed the company’s continued development of its financial resources. Additionally, the fund injection was set to address the demand for working capital among SMEs, which represented a challenge due to minimised access to capital by traditional high-street banks.

Supporting UK SMEs

Considering UK SMEs’ growing need for financing solutions and their contribution to the region’s economy, several companies have been focusing their efforts on optimising how they serve small businesses. For example, besides iwoca, the SME Finance Taskforce recently developed an action plan to advance UK economic growth. The initiative was projected to accelerate lending and access to finance for 5.5 million SMEs, which employed 60% of the private sector workforce and to deliver more than 50% of the UK economic turnover.

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Keywords: funding, investment, SMEs, SME lending, financial services
Categories: Banking & Fintech
Companies: Iwoca
Countries: United Kingdom
This article is part of category

Banking & Fintech

Iwoca

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