Digital lender Selina Finance raises £42m Series A

Digital lender Selina Finance has completed a £42 million Series A fundraise. The funding includes £12 million in equity and £30 million in debt lines and will boost the company’s growth as they look ahead to launching a consumer product later this year.

The equity funding, raised from a range of fintech investors including Picus Capital, Global Founders Capital and others, will enable the business to accelerate its growth plans and investment in technology as it prepares to enter the consumer lending market later this year, subject to regulatory approval.

In addition, the London-based fintech has secured £30 million in debt lines that will be used to support more SMEs and, post-regulatory approval, consumers across the UK.

Founded in 2019 by Andrea Olivari, Hubert Fenwick and Leonard Benning, Selina Finance offers overdraft-style credit facilities up to £1 million which allow SMEs and consumers to borrow against the equity tied up in their homes or investment property.

In contrast to existing providers, the solution is feeless – with no setup, early repayment, or valuation fees – and, unlike conventional term loans, has built-in flexibility: borrowers can draw (and repay) funds whenever they choose, and pay interest on what is outstanding.

“We’re bringing a completely new product to the lending market which, unlike a conventional loan, offers customers real flexibility. Our customers can save time and money by only drawing down and repaying when they need to without the need to re-apply, plus the product is feeless and transparent which is what customers have come to expect in the 21st century,” explains one of the co-founders Leonard Benning.

Selina Finance works with more than 200 commercial finance and mortgage distribution partners across the UK and is planning to offer its product to UK consumers later in 2020. Since lending started last year, they have recorded zero defaults and no arrears.

Co-founder Andrea Olivari added: “This Series A funding is a significant milestone in Selina Finance’s mission to offer homeowners flexible and affordable credit. Despite the uncertainty and disruption caused by COVID-19, our investors have demonstrated their belief in our unique proposition and the team we have built to bring our vision to the UK market.”

Robin Godenrath, Managing Director at Picus Capital, added: “Selina Finance is bringing much-needed innovation to the UK lending space by allowing customers to access the equity locked up in their residential property, seamlessly and on flexible terms.

“The team impressed us with their strong focus on building a fully digital customer experience and have already achieved great product-market fit with their business loan use case. We’re excited and confident that Selina’s consumer proposition will also become an attractive alternative in the consumer lending space.”