Selina will use the money to develop a consumer product in the UK and help with expansion into European markets.
A London-based fintech which offers property-backed loans to businesses has secured £42m in a funding round.
Selina Finance has raised £12m in equity and £30m in debt to distribute as loans.
The money will be used to bolster its product offering in the UK, where it’s in the process of getting a licence to offer loans to consumers, and fuel overseas expansion.
The equity fundraising was provided by fintech investors Picus Capital, Global Founders Capital amongst other investors.
Selina Finance offers loans in the form of credit facilities up to £1m with APR starting at 4.95 per cent.
SMEs borrow against the equity tied up in their homes or investment property. Borrowers can draw and repay funds whenever they chose.
One point of difference to some competitors, says Selina Finance, which was founded in June 2019, is that it charges no repayment, setup or valuation fees, with an application process done solely online.
“We’re bringing a completely new product to the lending market which, unlike a conventional loan, offers customers real flexibility,” said co-founder Leonard Benning.
“Our customers can save time and money by only drawing down and repaying when they need to without the need to re-apply, plus the product is feeless and transparent which is what customers have come to expect in the 21st century.”
“Homeowners deserve to be able to unlock the value tied up in the home they’ve worked so hard for, both at an affordable price and in a flexible manner,” added co-founder Hubert Fenwick.