Fintech Futures

UK fintech Funding Xchange lands $10m in Series A funding round

Publication: Fintech Futures
17th September 2020

Funding Xchange (FXE), the UK-based business loan and funding marketplace, has landed $10 million in Series A funding.

Its decisioning platform, which powers Monzo, Experian and MoneySuperMarket, last raised funds inNovember 2019.

The round was led by existing backers Downing Ventures and Gresham House Ventures, with participation from new investor Hambledon Capital.

The FXE background

Former dairy farmer Katrin Herrling set up FXE in 2014 after the financial crisis saw her farm's borrowing rates rocket.

Former Experian exec Max Firth joined FXE's in 2018, followed in early 2019 by another Experian alum in Paul Henry.

The two pushed FXE towards providing decisioning solutions to banks and lenders, as well as improving the delivery of data analytics.

FXE's white label lending solution digitises steps in the underwriting process for firms trying to serve a wider SME market.

The fintech promises SMEs quotes in three minutes, decisions in five minutes, and funds in the bank in ten minutes.

Lending in COVID-19

The pandemic has highlighted a need for easier lending processes for SMEs.

“Investors are seeing the significant opportunity to transform SME lending to make funding more accessible, more affordable and more sustainable,” says Herrling in a statement.

In the UK, there have been numerous calls from SME lenders for faster accreditation under government schemes, and easier access to capital.

Investor Daniel Cheung of Downing Ventures adds that new technologies “are critical to help SMEs access finance at speed and at scale”.

COOs and BCR funds

FXE has been busy this year. The funding follows the appointment of a new chief commercial officer.

Ben Sher spent more than 10 years at US financial software firm FIS. He then moved to Q2-acquired Cloud Lending Solutions as its managing director.

Sher's appointment came a month after FXE landed a £5 million allocation from the British Competitions Remedies' (BCR) Pool E fund.

It acquired the new cash in partnership with Shawbrook Bank, Enterprise Nation and the National Association of Finance Brokers.

The allocation is designed to give SMEs more access to alternative funding options.

The fintech launched a new online portal in April. It helps businesses check eligibility for different types of finance during the pandemic with Experian.

The portal, which covers the government scheme loans, allows businesses to check eligibility across a whole 40 lenders.