Funding Circle beats revenue targets, originates £2.3bn in 2018

By Daniel Lanyon on Sunday 20 January 2019

Editor's PickAlternative Lending

The platform’s latest numbers have cheered investors following a volatile first quarter of trading since its IPO.

SME-focused P2P lending platform Funding Circle saw revenue grow 55 per cent, excluding property, last year exceeding the 50 per cent guidance stated at its initial public offering [IPO] in October, according to an investor update.

Loans under Management rose to £3.1bn in 2018, up 55 per cent compared to the same period last year and also exceeding its IPO guidance.

The firm says it saw it total originations of £2.3bn in the year to 31 December 2018, up 40 per cent while it also record originations of £683m for Q4 2018 vs £522m in Q4 2017, up 31 per cent.

Revenue growth exceeded origination growth in H2 2018, the firm said,  owing to policy changes for existing borrowers in the US. This reduced overall originations, but had no impact on revenue.

Samir Desai, CEO and co-founder of Funding Circle, said: "Funding Circle delivered a strong end to 2018 which resulted in exceeding our revenue and Loans under Management guidance for the year."

“We were pleased to announce a number of new institutional investor transactions in Q4, which is further validation of the attractive risk-adjusted returns generated on the Funding Circle platform. We enter 2019 with continuing confidence and remain focused on delivering our growth strategy set out at IPO."

Funding Circle also said that it is targeting revenue growth in excess of 40 per cent in the medium term. 

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