Peer-to-peer (P2P) lending platform Funding Circle has raised $100m in a Series F round led by Accel Partners.
Existing backers including Baillie Gifford, DST Global, Index Ventures, Ribbit Capital, Rocket Internet, Sands Capital Ventures, Temasek and Union Square Ventures also participated in the round.
The funding announcements follows news earlier in the month that the London-based firm is expanding its partnership with British Business Bank Investments.
The government organisation plans to invest a further £40m in SMEs through the platform.
Funding Circle claims the investment follows its UK business reaching profitability in Q4 2016 with more than £2.5bn flowing through the platform globally.
It says more than 25,000 business across the UK, US and Europe have benefited from investment through the platform to date, creating more than 50,000 new jobs.
UK Chancellor of the Exchequer Philip Hammond weighed in on the news and said: “Funding Circle has become a real success story for British Fintech and news that it has attracted £80m of investment is further evidence of the growing importance of this industry.
“This is another vote of confidence in a UK firm that plays an important role in our economy – helping businesses to grow and create jobs.”
Founded in 2010, the small business lender last year saw £1.1m invested through its platform with £400m coming in Q4 alone when its UK operation recorded 90% year-on-year growth.
The new round brings Funding Circle’s total funding to more than £300m.
Accel partner Harry Nelis said: “We’ve been impressed by the Funding Circle team since our early investment in the company.
“It has achieved significant growth across multiple international markets by delivering an appealing lending option to SMEs and attractive risk-adjusted returns to investors on the platform.
“This investment makes Funding Circle the largest and best capitalised SME lending platform in the world, and we’re thrilled to continue to support its journey.”
Funding Circle will use the new capital to continue developing its platform and hire additional staff.
Company CEO and co-founder Samir Desai said: “Today’s news is the next step on our journey to create a category-defining company that helps thousands of small businesses access finance and create jobs.
“Over the next 12 months, lending through the Funding Circle platform will create a further 50,000 new jobs, supporting economic growth in the UK, US and continental Europe.”
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