Funding Circle targets overseas growth as revenues soar
FUNDING Circle reported a 59 per cent jump in full-year revenue and narrowed its losses, as the platform eyes further international expansion.
The peer-to-peer business lender posted revenue of £50.9m for 2016, up from £32m the previous year, while losses fell to £35.7m from £36.9m, which it attributed to “continued investment in technology, marketing and staffing”.
The UK business was cashflow positive in the last quarter of 2016 and has continued to generate positive cashflow through the first half of 2017, the company said in its latest annual results, filed with Companies House this week.
“2016 was another record breaking year for Funding Circle,” said chief executive Samir Desai (pictured).
“We were pleased to achieve our objectives of generating positive cashflow for the UK business whilst continuing to deliver significant topline growth.
“These results, coupled with accelerated growth during the first half of 2017, reinforces our position as the leading lending platform for small businesses globally.”
Read more: Funding Circle scraps manual lending and re-jigs rates
Funding Circle already operates in the US, Germany and the Netherlands. Desai said the three markets combined “represent a market opportunity seven times the size of the UK” and that the firm expects to enter new international markets “in due course”.
Funding Circle said approximately 10,000 businesses secured funding via its platform last year, creating an estimated 25,000 new jobs across the UK, US, Germany and the Netherlands.
63,000 UK retail investors have now earned £135m in interest through the platform, with 15,000 customers signing up in 2016.
It has been a busy period for the ‘big three’ P2P lender, which received full Financial Conduct Authority approval in May this year. Last month, the platform re-branded and launched a £12m marketing campaign.
It also announced a partnership with Aegon in August, whereby the Dutch insurer will channel £160m through the platform to fund business loans.
