CapitalRise secures £30m City funding line to boost lending
CAPITALRISE has secured a £30m institutional funding line from an unnamed financial institution.
The peer-to-peer property lender said on Monday that the “major financial institution” would fund loans alongside other investors and underwrite larger projects.
It comes as the platform’s loanbook hit £300m, secured on prime property assets in Mayfair, Knightsbridge and the home counties.
“This is another major milestone for CapitalRise and forms an integral part of the business’ growth plans,” Uma Rajah (pictured), chief executive of CapitalRise, said.
“It provides us with more bandwidth to capitalise on the high volume of quality loan enquiries being generated by our origination team.
“To have attracted the attention of such a highly regarded institutional partner acts as a major validation of the quality of our lending.
“Having already invested in adding resource to meet our growing deal flow and expand marketing activities, this funding line and those we have in the pipeline are a strong endorsement of our strategy.
“They enable us to build on the foundations in place to scale the business across every metric, including our product range.”
CapitalRise attracted £2.27m in a Seedrs crowdfunding campaign last month.
The Seedrs fundraise attracted 723 individual investors from 42 different countries, who together hold 8.57 per cent of equity, valuing the business at £18.25m.
The property investment platform said it will use the funds raised to expand its team and invest in marketing activities, in order to scale up the business and reach its £100m cumulative lending target.