Fintech: Investors back new non-bank lender to SMEs

Peter Lee
Published on:

Iwoca a game changer, say banks; it will lend at scale to small companies.

Christoph Rieche, co-founder and CEO of iwoca

The flow of venture capital investment into fintech disruptors to the banking industry continues, as these new providers seek to boost funding to small and medium-size businesses that have been poorly served by traditional lenders.

Iwoca (it stands for instant working capital), one of the fastest growing SME lending platforms in Europe, carried out a $20 million Series B equity financing round led by Acton Capital Partners, the specialist German venture capital firm, and CommerzVentures, the corporate venture capital subsidiary of Commerzbank in July. Redline Capital and other existing investors also participated.

The funds raised will be leveraged up through iwoca’s own credit facilities, mainly with institutional investors into $150 million of lending capacity to support rapid expansion of iwoca’s UK operations and further enlarge its presence across Europe, notably in Germany, Spain and Poland.

"Our mission is to...