365 finance secures £55m funding

365 Finance has successfully completed a £55m debt and equity raise, as the fintech lender aims to quadruple its lending to SMEs over the next two years.

The London-based provider of revenue-based finance has already seen significant growth in demand, with demand more than doubling from pre-COVID levels. 365 Finance’s proprietary technology platform and unique automatic collections process have enabled it to buck the trend for SME lenders in the UK, maintaining market-leading credit performance and reaching record levels of origination.

“Our innovative revenue-based finance product has proven ever more popular with small businesses, to the extent that we’ve been growing at a pace that far exceeds our pre-COVID levels,” said Andrew Raphaely, 365 Finance Managing Director. “With fully automated repayments, a flexible repayments solution and service unmatched in our sector, we’ve positioned ourselves as the go-to alternative finance provider.”

“This raise will help us meet our goal of quadrupling our lending over the next two years, and to become the leading revenue-based finance provider in the UK.”

The equity round saw Kendal Capital invest in the business, while the debt facility was concluded with Pollen Street Capital.

Michael Katramados, Partner, Pollen Street Capital, said, “We are delighted to build on our strong relationship with 365 Finance and continue as their main funding partner as they embark on the next chapter of their growth. This facility aligns with our commitment to generating positive impact, with 365 Finance supporting SMEs across the UK with flexible finance.”

Grant Kurland, Director of Kendal Capital, commented, “365 Finance has enjoyed stellar growth in recent years – their innovative product, outstanding team and huge demand in the market combine for a very exciting future, which we’re thrilled to be part of.”

Company information

– 365 Finance is a direct financial provider, offering revenue-based funding up to £400k to small and medium sized businesses across the United Kingdom. Repayments are fully automated and perfectly align with sales, with no fixed repayments or set repayment period.

– Kendal Capital is a global specialty finance investment firm which takes strategic stakes in well-established yet high growth businesses. The investments leverage off Kendal Capital’s experience and competencies which support the founders and management to achieve their mission.

– Pollen Street Capital is an independent alternative investment management company, focused on accelerating the progress of the financial, business services and technology sectors. It was established in 2013 and manages over £3bn AUM across private equity and credit strategies on behalf of investors including leading public and corporate pension funds, insurance companies, Sovereign Wealth Funds, Endowment and Foundations, asset managers, banks, and family offices from around the world. Pollen Street has a team of over 70 professionals with offices in London and New York City.