Marketplace lending platform Landbay has secured approximately £3.2m in funding from new and existing institutional investors in 2021, after a “constrained” 2020 which saw a total of £1.2m raised.
According to the company’s 2020 financial statement, loan completions fell in 2020 year-on-year, although the total loan book value rose from approximately £460.5m in 2019, to approximately £602.8m in 2020 – an increase of 30 per cent.
“Whilst lending was constrained in 2020, quarter on quarter growth resumed in Q2 supported by institutional funding diversification, product and criteria and investment in the new technology which significantly increased efficiencies and underpinned service levels as the business scales,” said John Goodall, chief executive and co-founder of Landbay.
“The specialist segment of the overall buy-to-let market continued to grow strongly, driven by professionalising of the sector from regulatory and tax changes. Landbay continues to build a scalable, technology enabled and service focused lender with the aim to become the leading specialist buy-to-let lender in the UK.”
During the 12 months ending 31 December 2020, Landbay made a loss of £2,279,008 – down from a loss of £3,205,821 in 2019.
Read more: Landbay launches large buy-to-let loan range
Revenue remained largely static in 2020 at £8,037,288. In 2019, total revenue was £8,036,201.
The company’s financial report confirmed that Landbay is still regulated by the Financial Conduct Authority, even though this is not mandatory when dealing exclusively with institutional investors.
“Signing of further new institutional funding facilities during the year strengthened diversification and funding and the ability to materially increase origination volumes,” added Goodall.
“The strong pipeline at year end and applications levels run rate following a strong recovery post Covid-19 underpins good momentum going in to 2021.”