Note from Editors:
Funding Circle is an #alternative finance company that lends to small businesses. In April, it raised $150 million from DST Global, Baillie Gifford, BlackRock, Sands Capital, and Temasek. This amount together with money raised from previous rounds are still unspent, and are reflected in its balance sheet.
by Oscar Williams-Grut
Funding Circle’s online platform lets savers lend directly to small businesses at more favourable interest rates than offered by traditional bank savings accounts.
Accounts filed with Companies House in the UK show Funding Circle Holdings, the parent company of both Funding Circle’s UK and US businesses, did revenues of £13.1 million ($20.1 million) in the year to December 31, 2014. That was up from £5.3 million ($8.1 million) in 2013.
But CEO and cofounder Samir Desai says the business is already well on its way to totally eclipsing this figure in 2015. He told Business Insider: “With businesses like ours where we’re growing so fast, the numbers become quite quickly out of date. We’re now actually run rating just shy of treble the revenue we achieved for all of last year.”
That would put revenues for the year somewhere slightly above £35 million ($53.8 million).
Since launch around $1.3 billion (£840 million) worth of loans have been made on the platform — a total the platform set to near enough match in lending this year, showing the crazy level of growth Funding Circle is seeing.
The 5-year-old company is one of a number of “alternative finance” businesses that have risen to prominence since the financial crisis. Their popularity has been driven by savers looking for better returns with interest rates at record lows, and both small businesses and consumers facing a drying up of credit from banks.
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Curated from Funding Circle is doing so well it hasn’t touched the £97 million it raised in April
Note: Featured Image credit to pixabay.com