London-based fintech startup Fintern has raised £8m in a Series A funding round led by international investment firm Hambro Perks.
The latest capital injection brings Fintern’s total funding to £40m. Fintern plans to use the fresh funds to expand its business in the UK and add new members to its team.
The startup is currently a consumer lender but plans to launch its first B2B partnerships.
Fintern was founded in 2020 by a team of former McKinsey, EY, Bank of America Merrill Lynch, HSBC and XiaoMi employees.
Its goal is to improve consumer access to affordable credit. It does so using open banking to gain access to a consumer’s spending habits instead of basing the decision solely on their credit score.
The startup is authorised by the UK’s Financial Conduct Authority and uses algorithms to calculate how much it can lend to consumers.
Fintern says it has processed more than 50,000 loan applications since it launched the service in March 2021. The company claims that over 60% of its customers would not have been approved for a loan using traditional assessment measures.
The funding round also included an equity investment from Fintern’s primary debt provider, Varengold Bank, and other high-net-worth individuals.
Dr. Michelle He, COO and co-founder at Fintern, said: “I know first-hand what it means to be denied access to vital financial support. When I first moved to the UK, I was unable to get a loan despite my full-time employment. It was incredibly frustrating and exposed many of the issues within the current lending system.
“After working within this system with Gerald (CEO and a co-founder), we decided we were in a unique position to change things for the better.”
Prior to its latest funding round, Fintern secured £32m in April 2021.
Osborne Clarke LLP advised Fintern on the fundraising.