Funding Circle plans to raise GBP 300 mln in IPO

As reported in January, Funding Circle was seeking advisors for the IPO. At that time, existing investors said the company could hit a GBP 2 billion valuation once it goes public.

In the latest plan, Heartland, the private holding company of Anders Holch Povlsen (an investor in companies such as ASOS and Zalando), has confirmed that it will participate as a “cornerstone” investor in any such listing and has agreed to purchase 10% of the issued ordinary share capital up to a maximum valuation of GBP 1.65 billion.

In addition, Alcentra, an asset management firm owned by The Bank of New York Mellon Corporation, recently agreed to lend USD 1 billion to small businesses through Funding Circle’s platform in the US over the next few years.

Funding Circle offers SME loans in the UK, US, Germany and the Netherlands. It launched in 2010.
According to the company, it has facilitated more than GPP 5 billion in loans to over 50,000 SMEs from 80,000 investors – including over GBP 1 billion in the first half of 2018.

The company uses proprietary credit models and data analytics, and borrowers can complete an initial application in “minutes” and “typically” receive a decision within 24 hours in the UK and US.