Shawbrook invests in fintech lender

Shawbrook backs SME lender




SME lender iwoca has raised a £25m secured debt facility from a syndicate led by Shawbrook Bank.

The challenger bank was joined by a number of undisclosed lenders in raising iwoca’s available debt facilities to £40m.

The investment will be used to develop iwoca’s technology platform as well as scale operations across the UK and Europe.

Michael Katramados, director at Shawbrook Bank, said: “iwoca is one of the most innovative lenders in the UK and we are excited to see their continued growth and success.

“They are creating a truly unique platform for SME lending and we are keen to continue working closely with the management team to help them expand their funding capabilities and support more SMEs in the UK and Europe.”

In addition to the debt facility, iwoca also closed a £21m Series C equity financing round, bringing its total equity funding to £38m.

Christoph Rieche, co-founder and CEO of iwoca, added: “It’s been an incredible journey over the last five years, but we are still at the very beginning.

“We’ve been able to support 7,000 small businesses, but we aim to finance at least a million customers over [the] next decade.

“This investment gives us the firepower we need to achieve that mission.”

The news comes just two months after iwoca told Bridging & Commercial that it planned to double the amount of brokers it uses within the next year.

iwoca has now lent over £150m through 18,000 transactions since its launch in 2012.

The firm has supported 7,000 businesses in countries such as the UK, Poland and Germany. 

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