- UK-based SME lender Iwoca has secured a debt funding package totaling £270 million to address the increasing demand for finance from small businesses.
- The funding includes a joint commitment of £150 million from Citibank and Insight Investment to support Iwoca’s growth in Germany.
- Additionally, a further £120 million arrangement with Barclays and US-based Värde Partners will be utilized to scale operations in the UK.
- Last October, Barclays, and Värde Partners provided Iwoca with a £200 million debt facility.
- Iwoca, launched in 2012, offers embedded lending solutions allowing small businesses to access loans through third-party platforms and neobanks.
- The company has provided £3 billion in loans to SMEs since inception, including £200 million across 9,000 business loans in the last quarter.
- According to Iwoca’s SME Expert Index, 76% of brokers reported a decrease in SME funding from banks, while 86% anticipated an increase in demand for funding.
- Christoph Rieche, CEO and co-founder of Iwoca highlights the flexibility and speed of its Flexi-Loan service as a key advantage, emphasizing that the investment will enable the company to meet high demand from small businesses.
- Iwoca has processed over 130,000 small business loans to date, leveraging ample data through risk modeling to cater to businesses beyond the restrictions of traditional banks.
