In a move signalling the end of an era for one of Britain’s pioneering financial technology firms, Samir Desai, co-founder of Funding Circle, is set to leave the board next month.
Desai, aged 41, co-founded the peer-to-peer lending platform in 2010 together with Andrew Mullinger and James Meekings. After serving as the company’s CEO for 12 years, Desai transitioned to a non-executive director role in 2022. His impending departure marks the complete exit of all three original co-founders, representing a significant shift for the company.
Funding Circle, once a celebrated name in the UK’s fintech sector, has faced a series of challenges since its initial public offering (IPO) in 2018, where its shares dramatically fell from their 440p listing price. The company has struggled with profitability, recording a profit in only one year post-IPO. Further compounded by the pandemic and regulatory pressures, Funding Circle ceased its peer-to-peer retail operations in 2022.
Desai’s departure follows that of his fellow co-founders. Mullinger stepped away in 2016, and Meekings left in 2019. Desai currently focuses on his new venture, Super Payments, although he retains a 4.9% stake in Funding Circle.
Meanwhile, Lisa Jacobs, the current CEO, leads efforts to steer the company towards profitability. The strategy involves job reductions and the sale of the company’s US division. Funding Circle is also in the process of searching for a successor to its long-standing chairman, Andrew Learoyd, who will step down by March 2024.
Desai’s exit symbolises not just a change in leadership but the closing chapter of Funding Circle’s founding story. His departure will be a pivotal moment for the company as it navigates new leadership and strives for sustainable profitability in a competitive market.
As Funding Circle transitions from its foundational leadership, the company faces a critical period of restructuring and refocusing under new guidance. The commitment to achieving profitability remains central to its strategy, marking an important phase in its evolution.