Peer-to-peer lending platform Funding Circle has announced its intention to raise £300 million through an initial public offering (IPO) in London.
Founded in 2010, Funding Circle operates as an SME loans platform in the UK, US, Germany, and the Netherlands. By connecting small and medium enterprises (SMEs) seeking finance directly with investors, the company claims to have facilitated loans totalling more than £5 billion to over 50,000 SMEs, sourced from 80,000 investors.
The company’s co-founder and CEO, Samir Desai, stated, “At Funding Circle our mission is to build a better financial world. Today’s announcement is the start of the next stage in our exciting and transformational journey. Over the last eight years, we have worked hard to build a platform that is number one in every market we operate in. By combining cutting-edge technology with our own proprietary credit models and sophisticated data analytics, we deliver a better deal for small businesses and investors around the world. I am very proud of the team and culture we have created at Funding Circle, both of which have been integral to our success to date.”
Funding Circle plans to list its shares on the main market of the London Stock Exchange, aiming to generate gross proceeds of £300 million. The company believes that this float will enhance trust among investors, borrowers, and regulators, as well as boost the group’s profile and brand awareness.
In the first half of 2018, Funding Circle generated revenues of £63 million, an increase from £41 million in the same period of 2017. Meanwhile, the loans under management by the end of June exceeded £2.5 billion. Merrill Lynch, Goldman Sachs, and Morgan Stanley are acting as advisers for the IPO.
By pursuing an IPO, Funding Circle aims to solidify its market position and continue its growth trajectory, further establishing itself as a leader in the peer-to-peer lending space.
