Ireland-based P2P mobile lending platform Flender has raised a £350,000 investment from Enterprise Ireland, Flender founder Olic Cavanagh told FinTech Global.
This contribution comes as part of the company’s current £2m funding round, which it is still in the process of raising. FinTech Global reported late last year the company had moved past the halfway mark, hitting £1.2m. It is raising this capital at a valuation of £8m, and of the funding, £400,000 came through a crowdfunding campaign.
Enterprise Ireland is a government organisation for the development of Irish businesses into world markets. The body’s venture arm looks to back Irish companies alongside the private sector and support them with access to funding. Under its latest scheme, it has a particular focus on wider technology and life science businesses.
Flender is a P2P lending solution which allows both lenders and borrowers to set their rates. Through the solution any business or individual is able to launch a campaign, which can then be funded by lenders they select.
The company’s new crowdfunding solution is the only one in Ireland, with other businesses having to use UK-based solutions, like Seedrs. This lack of platforms available has led the company to launch an equity crowdraising solution for Irish companies.
Alongside this, Flender is raising a debt round which is being led by PWC across a couple of tranches, Cavanagh said. While he couldn’t give any names involved it does have backing from senior debt mezzanine level. The debt round is being raised in a SPV structure.
The capital raised from the funding round will be used to expand by scaling up operations in sales, marketing and funding many more businesses. Equity will also be used to promote its new vertical into property-based P2P lending.
In a previous discussion with FinTech Global, Cavanagh said the company would also look to expand into other countries in Europe. Having already received FCA authorisation, the UK is one of the markets it will move into.
He said, “The platform is already multi—country and it is quite easy for us to expand into other countries just according to their compliance regulations.”
Copyright © 2018 FinTech Global