Fintech business lender MarketFinance secures £280m debt and equity fundraise

Anil Stocker

Fintech business lender MarketFinance has today announced a £280m debt and equity fundraise and its accreditation under the Recovery Loan Scheme (RLS). This comes after MarketFinance became one of the first fintechs to be accredited under the Coronavirus Business Interruption Loan Scheme (CBILS), having lent £250m to companies across the UK.

Launched by the British Business Bank in April 2021, the Recovery Loan Scheme supports access to finance for UK businesses as they recover and grow following the pandemic. Funding from the Scheme can be used for any legitimate business purpose including managing cashflow, investment in new equipment and preparing for future growth. It is designed to appeal to businesses that can afford to take out additional finance for these purposes.

MarketFinance is ready to lend immediately with its debt and equity funding. The debt financing has been provided from a large global investment firm alongside Italy’s largest bank, Intesa Sanpaolo S.p.A. The equity investment was led by Black River Ventures (previous investments include Marqeta, Upgrade, Coursera and Digital Ocean) with participation from existing investor, Barclays Bank PLC.

Alongside this, the launch of MarketFinance Flex Loans today will aim to help nearly one million SMEs in the UK solve their short-term funding gaps up to £100,000. Viola Credit has provided MarketFinance with £20m to launch the Flex Loans product. Similar to a credit card or overdraft, businesses will have a pre-agreed limit of up to £100,000 which they can withdraw at once or in smaller amounts. Flexible repayment options enable the businesses to spread their repayments over 3 – 12 months based on their working capital needs. It is a solution to support a variety of one-off and ongoing funding requirements such as purchasing inventory, clearing outstanding invoices, upfront supplier payments, investment into sales and marketing, or expanding the team.

Anil Stocker, CEO at MarketFinance, commented: “This funding and our accreditation as a Recovery Loan Scheme lender is testament to the brilliant work everyone at MarketFinance has done to serve UK businesses during a difficult period. Adapting to the increased demand from businesses looking for finance online instead of through traditional avenues also drove our profitability this year, which has continued into H2 2021.”

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