Nascent property lending specialist Landbay is clearly targeting a fast ascent to the ranks of the peer-to-peer elite.
The platform specializes in a peer-to-peer funded buy-to-let mortgage offering that pays out a fixed 4.2% p.a. to lenders. Landbay kicked off life in the alternative finance space by successfully closing a £250k campaign via the uniquely structured equity crowdfunder Seedrs. Now the platform is looking to up its game to the next level by completing a £1.5m institutional investment round – which was led by Omni Partners and included an asset manager and an angel investor. The amount of equity given up has not been disclosed.
In addition to the round, Landbay is entering into a newly forged relationship with Omni in order to help develop its online alternative lending business. The arrangement is designed to enhance both Omni and its affiliates’ expertise in the alternative lending market.
John Jenkins, speaking for Omni said:
“Omni and its affiliates have built a successful and well-established alternative lending business. We are always looking to identify interesting developments in the lending space for our investment partners. Landbay is a highly credible player that stands out in a burgeoning market. We liked the clarity of their strategy and the quality and experience that the management team bring to this fast growing space. We are confident in their ability to grow a successful business.”
Landbay recently became the 9th member of the P2PFA – and indeed the youngest member of the industry trade body. The Association holds its members to a higher standard of conduct than is required by FCA regulation, and enlisting may be seen as a serious statement of intent from the early-stage buy-to-let mortgage platform. Landbay’s membership also translates to a general show of approval from the industry’s most well-established platforms – Zopa, RateSetter, Funding Circle, etc. – each of which must consent to the on-boarding of all new member platforms.
“Our new investors bring a wealth of experience and scale in the secured lending and mortgage space – it was very important to us that this round was strategic and the synergies that are created by our partnership with Omni will greatly assist our goal of building a £1 billion buy-to-let mortgage book over the next 4 years.”