Publication: IBS Intelligence
15th September 2020
UK SME funding technology platform, Funding Xchange, has announced the completion of a $10 million Series A funding round with the closure of the second tranche of the financing. Lead investors Downing Ventures and Gresham House Ventures, together with Hambledon Capital, completed the over-subscribed funding round at stable valuation.
Funding Xchange is now “white labelling” and deploying its technology to banks and lenders to reduce their cost to serve. The technologies embedded in the platform deliver 60-70% cost savings for established and challenger banks looking for operational efficiencies, the ability to adapt to changing market conditions, and the drive for enhanced customer experience.
With the government intervention loans to support Covi-19d impacted businesses, Funding Xchange is well placed to address both the provision of funding, and the intelligent management of flexible repayment programmes.
Daniel Cheung from Downing Ventures said: “In the current economic climate, it has been apparent that technology solutions are critical to help SMEs access finance at speed and at scale. Funding Xchange continues to play an important role in driving innovation in this market.” He added that Downing Ventures remains 'hugely supportive of the potential of Funding Xchange'.
Henry Alty from Gresham House Ventures said: “We are very excited to continue to back Katrin and the Funding Xchange team as they transform SME lending. Particularly at the current time, access to capital is critical for small businesses, and Funding Xchange has a market leading solution to help companies get funded.”
The successful completion of the funding round follows onfrom the appointment four advisors to the company's board in June, ahead of the launch of its Credit-as-a-Service proposition for banks and lenders.