Payment solution for on-demand workers Sonovate closes £165m securitisation deal

Sonovate, a developer of embedded finance and payment solutions for the contingent workforce, has bagged £165m in a securitisation deal.

This deal was made with BNP Paribas and M&G Investments, with the latter deploying £15m into the round.

The firms hope the capital will help Sonovate lend over £1.3bn in invoices this year. Sonovate expects to fund £2bn in invoices in 2023.

As a result of the securitisation, Sonovate will increase its capital efficiency and expand its customer base, especially in the enterprise space. It will also deliver added flexibility for export financing.

Since it was launched in 2014, the company has funded more than £2.75bn in invoices. Last year, the company recorded a 58% YoY increase in total funding.

The FinTech company provides the on-demand workforce with embedded finance and payment solutions. It serves recruitment businesses, consultancies and labour marketplaces that engage contractors and freelancers across the world.

Its API-driven technology aims to simplify contract management, freelance worker placement and payment.

Sonovate CEO and co-founder Richard Prime said, “Sonovate’s vision is to be the funding platform for the future of work. As we scale, we will continue to integrate into the wider ecosystem with the aim of constantly adding value in our market.

“Deals such as this one provide us an exceptional level of flexibility, which we can extend to our customers, enabling them to access innovative funding solutions via a state-of-the-art platform.”

The FinTech company previously raised £110m in a funding round back in 2019.

Earlier in the year, Moves, an all-in-one banking app for gig workers, closed its seed funding round on $5m.

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