The most anticipated fintech IPO in the UK is finally going to happen. Yesterday, small business lender Funding Circle filed papers with the London Stock Exchange to go public in a deal expected to raise £300 million and value the peer to peer lender at more than £1.5 billion.
This is big news for the fintech community not just in the Europe but for the US as well. Funding Circle has had a US operation since 2013 and has loaned more than $1 billion here. Overall, Funding Circle has said it has loaned more than £5 billion (around $6.5 billion) in the four countries where it operates: UK, US, Germany and The Netherlands. Clearly, the US is the largest of these markets and it is highly likely that the US will eventually be Funding Circle’s largest market.
According to this piece in Forbes, Funding Circle is now the biggest small business lender by volume in the UK. And while they are expanding the overall market there in conversations I have had with CEO Samir Desai over the years he has made it clear that he intends to make Funding Circle a global brand. So, their international business will become ever more important as time goes on.
Funding Circle is expanding their footprint in the US. Last month I attended the official opening for their new office in Denver, Colorado (I am based in Denver). Their US headquarters are in San Francisco so Denver will be their second US office. The modern office space in downtown Denver has room for about 200 people although at the time of their launch they had around 40 people on staff there. So, clearly they have big expansion plans for the US. [Read more…]