Publication: Fintech News
7th October 2020
Funding technology platform, Funding Xchange, announce the completion of a $10 million Series A funding round with the closure of the second tranche of the financing.
The business has seen a surge in demand from a drive towards digital transformation accelerated by the coronavirus pandemic. This potential has been recognised by lead investors Downing Ventures and Gresham House Ventures, who together with Hambledon Capital, completed the over-subscribed funding round at stable valuation despite the wider economic backdrop.
Funding Xchange was founded in 2014 to transform the SME lending market with the core aims of making SME finance more accessible, affordable, and sustainable. The technology at the heart of Funding Xchange is unique, delivering quotes to SMEs in 3 minutes, decisions in 5minutes and funds in bank in 10 minutes.
Funding Xchange is now “white labelling” and deploying its technology to banks and lenders to dramatically reduce their cost to serve. The proven technologies embedded in the platform deliver 60-70pc 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. Finally, the analytics insights at the centre of the Funding Xchange model, enable the business to support banks and lenders in the assessment of their product mix and portfolio.
With the government intervention loans to support Covid impacted businesses, Funding Xchange is particularly well placed to address both the provision of funding, and the intelligent management of flexible repayment programmes.
Co-founder and CEO 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.”
Leading the investors, Daniel Cheung from 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. Funding Xchange continues to play an important role in driving innovation in this market. 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.“
Joining Downing Ventures as an investor, Henry Alty from Gresham House Ventures added, ““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.”
This article was published in Fintech News 7th October 2020