GROWTH Street is now seeing its revenue grow faster than its losses as its turnover increased by 105 per cent across its group of companies last year.
Greg Carter, chief executive of the peer-to-peer business lender, said the group posted net revenues of more than £1m in 2018.
The group is made up of parent company Growth Street Holdings and its subsidiaries Growth Street Limited, which manages the technology and loan administration, and Growth Street Exchange, which operates its regulated P2P business.
The companies’ losses increased by 45 per cent to a £5m overall on an earnings before interest, taxes, depreciation and amortisation basis.
As a small company, Growth Street currently does not have to prepare consolidated accounts for the whole business.
Accounts for its P2P subsidiary, Growth Street Exchange, showed its profit and loss reserve increased from a loss of £1.7m in 2017 to £2.8m in 2018.
This indicates a loss of £1.1m for 2018.
Carter said the losses are linked to investment in technology and sales.
“We expect to become profitable in the next year or two,” he said.
“It is more important for us to make the right investments in infrastructure to manage risks.
“There is a potentially challenging credit environment, we want to make sure we are using the right combination of people and data.”
Growth Street has raised more than £17m since the end of 2018.
It secured £7.5m of financial backing to scale up the platform in January 2019.
The funding round was led by investment trust Merian Chrysalis and backed by Deutsche Bank’s former co-head of corporate banking and securities Rob Rankin and Mortgage Advice Bureau chief executive Peter Brodnicki.
It subsequently closed a £10m institutional funding round in June 2019 led by existing investors Merian Chrysalis Investment Company and advised by Merian Global Investors and Arts Alliance.
The platform said it will use the proceeds to improve its credit decision systems and expand its sales team.