London-based The Lending Works, which launched in early 2014, is set to use the multimillion pound investment to continue the growth trajectory of the business.

This includes building additional loan distribution channels, bolstering the team and furthering its investment in the technology platform.

According to AltFi data, the P2P market is forecasted to reach lending volumes totalling £4.3bn this year following the introduction of the Innovative Finance ISA and new regulatory P2P legislation.

Nick Harding, Founding CEO of Lending Works, said this new investment came at an exciting time for the lender.

“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.”

Charlie Pidgeon of NVM Private Equity said it had a strong track record of investing in successful technology businesses and it saw real potential for Lending Works.

“We believe the P2P market has significant growth ahead and through the partnerships the company has built over the last 12 months the business will be able to scale rapidly post-investment. 

“We are excited to be an investor at this point of the company’s development and look forward to supporting Nick and the team in the next phase of growth.”

Nick concluded by adding: “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.”