P2P lending platform Funding Circle is reportedly looking to hold an IPO on the London stock exchange later in the year.
The company reached a $1bn valuation after it secured a $100m investment last January, but the company is expected to raise more than this, according to a report by Sky News.
A group of investment banks are set to be hired later in the month to support the IPO, which could raise up to $2bn, it said. Funding Circle could launch the flotation in autumn 2018.
UK-based Funding Circle is a small business lender that helps to connect investors with businesses that wish to expand in the UK, US and Europe. Since its launch in 2010, the company has helped lend $5bn to 40,000 businesses.
The company recently surpassed the $5bn lending mark, of which, $1bn has been deployed to US businesses. Last November, Funding Circle hit a new record for total value of loans facilitated, after it helped $260m worth of loans.
Last January, Funding Circle secured a $100m Series F funding round led by Accel Partners. Other participants to the investment included Baillie Gifford, DST Global, Index Ventures, Ribbit Capital, Rocket Internet, Sands Capital Ventures, Temasek and Union Square Ventures. The capital injection brought the company’s total funding efforts to £300m.
The company’s fundraise was one of the biggest rounds in the UK last year, contributing to the YoY rise in deal value. Of the top 10 deals in the UK, four were marketplace lending companies, with Prodigy Finance, 1ST Stop Group, and Neyber being the other three.
At the same time as this Series F, the company received a £40m equity financing from government-run British Business Bank Investments. The funds were supplied to help the company support its loans to small businesses.
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