The lender’s focus on central London seems to be paying off, as India takes an interest.
Announced today, CapitalRise has closed a £2m seed funding round led by Raakhe K Tandon, the daughter of renowned banking entrepreneur and founder of India’s fourth largest private sector bank, Rana Kapoor.
As an online property lending and investment marketplace, the platform provides members with access to prime development and investment projects in central London and other sought-after locations across the UK, with the ability to also add on an IFISA tax wrapper. To borrowers it offers both debt and equity funding, with products including bridging loans, development finance and development exit loans.
Tandon’s family established YES Bank in 2004, which currently has over 1,000 branches, with a balance sheet size of £33.5bn and market capitalisation of £8.5bn. Commenting on the decision to invest, Tandon said it was the size of the market opportunity and quality of CapitalRise’s team that gives her the confidence that the platform will grow and succeed.
This latest investment will support CapitalRise’s growth, allowing the platform to expand its staff and open up new property investment opportunities. The lender has already seen fast take-up by investors, having more than doubled its base in the past 12 months.
“This investment comes at the perfect time for CapitalRise. Over the past 19 months we have built our technology platform and proved our business model, having already paid out over £2 million back to investors,” said Uma Rajah, CEO at CapitalRise (pictured).
“This seed funding will underpin our next stage of growth, helping us to grow the team and pursue more opportunities for investors and developers alike.”
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.