The world’s largest invoice finance marketplace has raised £6m to fuel the next phase in its expansion.
The intention of this latest fundraise is to continue the platform’s evolution into a “one-stop” destination for access to working capital. MarketInvoice representatives have indicated that the £6m in fresh funding will be used to expand the platform’s product set. In practice, that means allowing small businesses to raise finance against licences, contracts and subscriptions, as well as unpaid invoices. The platform will also devise a supplier finance product (the “flip-side” of the current MarketInvoice offering), whereby companies can gain access to capital in order to pay suppliers to complete large projects. Rumour has it that term loans (of the short-term variety) are also on the platform's radar.
Furthermore, thanks to the hint dropping of MarketInvoice CEO Anil Stocker, we know that a retail investment product is in the pipeline. Mr. Stocker recently indicated that his platform is currently 55% funded by high net worth money, with the remaining 45% coming from institutional investors. MarketInvoice’s decision to move into the retail space is in large part a reaction to the impending advent of the Innovative Finance ISA, which arrives April 6th 2016.
The platform’s £6m equity investment round was funded by existing shareholders Northzone and Paul Forster (Co-Founder of Indeed.com). Jeppe Zink, General Partner at Northzone, commented:
“We’ve been working with MarketInvoice for nine months and are really excited by what the team is achieving. We’re seeing great metrics around user growth and engagement. This is a classic example of a tech business disrupting an age-old industry and having a fantastic real world impact on its users based on a fundamentally better service. The opportunity for growth is massive.”
MarketInvoice stands just shy of £475m in terms of cumulative lending, according to the Liberum AltFi Volume Index. If its current run rate holds, the platform will likely cross the half billion mark in roughly a month’s time. Mr. Stocker outlined his vision for the company’s future:
“Our mission is to become the destination for small businesses looking for working capital finance. This oxygen of funding for UK businesses is a poorly served market and it represents a huge opportunity. We want to offer small businesses easy access to their monthly funding needs, and enable investors – from institutions to individuals – to drive small business growth whilst earning a market beating return.”
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.