The UK’s largest marketplace lending platform marginally narrowed its losses in 2016. Funding Circle, a business loans marketplace, lost £35.7m in 2016, slightly down from £36.9m in the previous year. Meanwhile the platform boosted revenues by 59 per cent to £50.9m, and saw its total loans outstanding climb 61 per cent to £1.37bn, according to a Companies House filing.
The company has attributed the only marginally narrowed losses to its continued investment in technology, marketing and staffing. Its overall loss margin narrowed to 70 per cent, compared to 116 per cent in 2015.
Funding Circle has also flagged that its group operating results for the first half of 2017 demonstrate that revenue growth has accelerated further, approximately doubling year-on-year.
“These results, coupled with accelerated growth during the first half of 2017, reinforces our position as the leading lending platform for small businesses globally,” said Samir Desai (pictured), Funding Circle’s CEO. “We continue to invest substantially in our international markets in the US, Germany and the Netherlands which represent a market opportunity seven times the size of the UK, and expect to enter additional international markets in due course.”
In 2016, the company notched a number of highlights, including kicking off its securitisation programme and striking a £100m funding deal with the European Investment Bank. Brexit killed the future of the latter partnership, but Funding Circle has since found a replacement in insurance giant Aegon, with which it signed a £160m deal in August.
Funding Circle says that approximately 10,000 businesses accessed funding via the platform in 2016, creating an estimated 25,000 new jobs across the UK, US, Germany and the US.