One of the UK's biggest fintech businesses is expanding into Germany, and through that country elsewhere in Europe, Business Insider reported on Tuesday.
Funding Circle, the peer-to-peer small business lending platform has acquired Germany's Zencap, and it is expected to expand through that company to Germany, Spain, and the Netherlands.
The deal was confirmed by Funding Circle to Business Insider via email, and the acquisition is expected to be publically announced later today, during the peer-to-peer industry conference LendIt Europe in London.
Funding Circle is one of the UK's highest profile financial technology, or fintech, businesses. Earlier this year it was valued at over $1 billion (£650 million) in a $150 million (£97 million) funding round.
Desai says in an emailed statement on Tuesday announcing the Zencap deal: “Our vision is to help millions of businesses across the world sidestep the outdated and inefficient banking system and borrow from investors. Today’s news is the next exciting stage of this journey. We have been hugely impressed with what the Zencap team have achieved so far. By coming together, we combine Funding Circle’s leading position in the UK and US with Zencap’s deep understanding of local markets to create the first truly global marketplace lending platform."
Zencap, backed by well-known incubator Rocket Internet, has experienced dramatic growth since its launch some two years ago. Crowdfund Insider reports that the combined operation expects to be generating over $120 million (£77.5m) per month in lending.
Funding Circle has provided access to capital to over 12,000 businesses, facilitating more than $1.5 billion (£970m) in lending in the UK and US in the past five years.