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Funding Xchange completes $10m Series A fundraising

Funding Xchange has completed a $10 million Series A funding round with the closure of a second tranche of financing.

The funding technology platform has seen a surge in demand from the drive towards digital transformation accelerated by the Coronavirus pandemic. This has been recognised by lead investors Downing Ventures and Gresham House Ventures, which together with Hambledon Capital, completed the over-subscribed funding round at stable valuation, despite the wider economic backdrop.

Funding Xchange was founded in 2014, aimed at transforming the small and medium-sized enterprise (SME) lending market. Its proprietary technology delivers quotes in around three minutes, decisions in five minutes and funds into bank accounts in 10 minutes.

Funding Xchange is now white labelling and deploying its technology to other lenders, with the claim that its platform can deliver 60 to 70 per cent cost savings for established and challenger banks. It added that the analytics in its model can support banks in the assessment of their product mix and portfolio.

Katrin Herrling, co-founder and chief executive of Funding Xchange, said: ”The current crisis has accelerated the trend towards digitisation and the use of intelligent decisioning that uses access to live data.

"We are delighted that our investors are seeing the significant opportunity to transform SME lending to make funding more accessible, more affordable and more sustainable through the deployment of our intelligent infrastructure.”

Daniel Cheung, a principal at Downing Ventures, commented: “In the current economic climate, it has been apparent that technology solutions are critical to help SMEs access finance at speed and at scale.

"Downing Ventures have been impressed with Katrin and the team’s ability to navigate through these uncertain times and remain hugely supportive of the potential of Funding Xchange."

 

This article was published in FS Tech September 14th 2020