Samir Desai purchase of stock is his first since the SME lender's IPO in 2018.
Samir Desai, CEO and founder of listed lender Funding Circle, has purchased over 163,000 shares in the company following the company’s recent results, according to an update posted on the London Stock Exchange (LSE).
Desai splashed the cash and spent over £101,000 to buy the stock in his own company on the same day that Funding Circle’s results were published, the share price having dropped to its lowest point in over three months.
The shares were purchased by Desai last Thursday for around £0.62 per share but have since leapt to £0.77 per share, an increase of 10 per cent.
Despite seeming like a fairly sizeable transaction, the CEO only increased his position by 1.1 per cent in total.
In the first half of this year, Funding Circle saw its losses increase to £113.5m, a jump of over 300 per cent compared to the same period last year.
Despite this, the fintech says it has approved more than £2 billion of loans in the first six months of the year in the UK and US and is the 5th largest CBILS lender with c.20 per cent market share of loans approved.
Desai remains positive that his company will break even by the end of this year, he said: “We remain focused on profitable growth and are reinstating our target of close to annual earnings before interest, taxes, depreciation and amortisation (AEBITDA) break-even for the business in the second half of 2020,” a step which, the fintech largely attributes to the acceleration of online SME lending.