British FinTech Lendable Achieves Unicorn Status | Capital risk
Loanable, the London-based personal lending fintech, has achieved unicorn status.
The dynamic startup launched in 2014 offers competitive and fast loans that are rated using a flexible credit search system so that users who request a loan quote don’t have their credit score affected.
The platform has proven popular with customers who, according to review engine Feefo.com, gave the company a 100% approval rating on services and response times. Part of Lendable’s success is that it can make lending easier for those with less than perfect credit scores.
Currently backed by Goldman Sachs, fintech’s new unicorn status has ensured that its early stage angel investors will have enjoyed a 250-fold ROI. Therefore, sources say new investors are keen to get involved in the action.
According to reports, the valuation was an internal transaction which saw initial investors and employees cash in around £ 30million in shares, with the company’s backers increasing their stake.
Goodbody Analyst Jean Cronin Told P2P financial news that the valuation was a “significant increase” for Lendable given the £ 500million value attached to the company when Balderton Capital conducted a secondary sale in 2018.
He said: ‘Notably, Lendable has only raised £ 4million in equity to date and recorded £ 15million in profit out of £ 32million in revenue in 2019. However, the next test decisive from a valuation point of view will be when Lendable seeks to raise more institutional capital. for expansion purposes.
Despite its unusual discretion in press advertising, Lendable has attracted the attention of several world-class investors. The latest public documents show:
- Glänzer’s stake in Lendable is now estimated at £ 23million.
- Passion Capital partner Eileen Burbidge partially liquidated her shares in previous sales, leaving a stake worth £ 355.5,000.
- Lendable co-founder Martin Kissinger owns around 15% of the company.
As a result of its success, Lendable has only raised £ 4million in equity since launch and recorded a profit margin of £ 15million on revenue of £ 32.1million in 2019. This achievement has positioned Lendable ahead of most of its European unicorn competitors such as Klarna, N26, Monzo and Revolut.
According to reports, Lendable, which uses institutional capital to fund its services, now issues a new loan every 30 seconds. With plans to expand into the US market, it is also rumored to be launching a new credit card product. FinTech is considered a leader in the industry due to its rapidly growing sales, accelerated applications, and highly competitive pricing.
Lendable is the original idea of its CEO and founder, Martin Kissinger, who created Berlin-based peer-to-peer lending fintech Lendico for Rocket Internet.
Kissinger used the vast amounts of data available in the UK during an opportunistic time when customer lending was a changing industry. The result was a more efficient and faster service than most of the major peer-to-peer competitors such as Rateseter and Zopa.
Part of Lendable’s success can also be attributed to when it was launched. The company started operations just before the Financial Conduct Authority tightened regulation for financial services companies. Kissinger said: “The FCA has created a much stricter regime and more companies have left the market. This was interesting for us because there was a window of time during which, if you already existed as a certified member, you could continue with your business and apply for authorization afterwards. It has become much more difficult to enter this business after this deadline.