Oakam, a digital micro-lender for the UK’s unbanked and underbanked consumers, has secured a £35m debt investment from Victory Park Capital.
The new funds raised will enable Oakam to accelerate its lending activity in the UK by more than 180 percent year, with the company now able to provide an additional £200m to unbanked communities.
Oakam claims to empower those overlooked by traditional lenders to build their financial futures by making accessing and managing credit more convenient. It claims its mobile app encourages customers to become more engaged and in control of their finances by offering seamless options to make repayments, apply for top-up loans, or access educational content
Since inception in 2006, the company has disbursed over 420,000 loans totalling £320m to help consumers get back on the credit ladder or access their first loan.
Victory Park partner Gordon Watson said, “Oakam’s model in micro-finance that captures the value of a digital approach without overlooking the role of human interaction has enabled the team to break into a highly competitive market. Our investment follows a long-standing track record at VPC of supporting fintech companies scale and provide financing where traditional means fall short. We look forward to supporting Oakam’s continued growth.”
The company was founded by Frederic Nze, who began his career in Credit Risk Management at American Express. He then joined GE Capital, where he supported the acquisition of distressed assets and turn-around situations. He also previously undertook general management roles at GE and Barclays Plc, focusing on large operations such as collection and branch distribution.
Victory Park Capital Advisors provides privately negotiated debt and equity capital solutions to small and middle market companies across a wide range of industries.
Earlier this year, Applied Data Finance has raised a fresh $6.5m in convertible notes from its new and existing investors. The San Diego and New York-based company also extended its existing credit facility with Victory Park Capital from $50m to $75m through to 2021.
Victory Park Capital also supplied a debt facility to New York-based online payment solutions provider Bread, which secured $126m of equity and debt financing in August.
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