SME lender in £21m funding round

Iwoca, a European credit provider to small businesses, has been supported by a group of investors led by Prime Ventures.

Iwoca, a UK-based European SME lender, has closed a £21 million (€24 million; $27 million) series C financing round led by Prime Ventures, the Netherlands-headquartered growth capital firm.

The latest financing included all the firm’s series A and B investors – including Acton Capital Partners, CommerzVentures, Global Founders Capital and Redline Capital – and brings Iwoca’s total equity funding to £38 million.

In parallel with the latest financing, Iwoca also raised a £25 million secured debt facility through a syndicate led by the UK’s Shawbrook Bank, increasing the firm’s available debt facilities to £40 million.

Iwoca said the capital would be used to develop its technology and data platform, scale up its UK and continental European operations and launch new partnerships.

“We’ve already been able to support 7,000 small businesses but we aim to finance at least a million customers over the next decade,” said Christoph Rieche, co-founder and CEO of Iwoca. “This investment gives us the firepower we need to achieve our mission.”

Iwoca has lent over £150 million since launching in 2012 and is part of a growing alternative lending trend as traditional banks struggle to meet a gap in funding for small businesses.