Lending Works, the first peer-to-peer lender to have insurance against borrower default risks such as accident or loss of employment, has closed its Series A investment round, raising its target of GBP3 million.
NVM Private Equity invested GBP2 million in early June 2016 to complete the round after earlier investments from an existing institutional shareholder.
The cash injection provides a timely boost for Lending Works, which is on the brink of launching its new Innovative Finance ISA (IFISA), in addition to confirming new partnerships, announcing key hires and introducing new loan products as part of the firm’s ambitious growth plans which have already seen it become the UK’s third-largest consumer P2P lender in just over two years.
Nick Harding, founding CEO of Lending Works, says: “We’re delighted to announce the recent investment in our business by NVM Private Equity. 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 Lending Works.
“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.”
NVM is an independently-owned private equity firm, specialising in SME investments typically between GBP2 million and GBP10 million. Over the last three decades, it has invested in over 270 SMEs in the UK, and currently manages over GBP300 million in private equity funds.
The investment underpins the positive momentum for Lending Works, with the platform having launched a point-of-sale system for loans within the retail finance sector earlier this year. The expansion into retail finance is part of Lending Works’ strategy to focus on partnerships in order to grow the business and reach its lending target of GBP50 million during 2016.
Harding says: “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. 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 they can take great confidence from this investment round which ensures Lending Works has a robust balance sheet. They can also draw comfort from the fact that our company has undergone the rigorous due diligence process that an institutional investor mandates before making an investment, hence validating Lending Works’ 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.”
