Signalling a vote of confidence in British fintech, business lending platform Growth Street has raised a £7.5m scale-up investment round led by Merian Chrysalis.
Asset manager Merian Global Investors has joined forces with leading individual investors including Rob Rankin, former co-head of corporate banking & securities at Deutsche Bank, and Peter Brodnicki, CEO of the Mortgage Advice Bureau, in backing Growth Street.
Existing Growth Street investors are also contributing to the round, including Christiaen van Lanschot, who serves as Growth Street’s chairman, Paolo Cuniberti, former CEO of Mediobanca UK, and Pi Capital CEO David Giampaolo. Growth Street was advised by Zeus Capital which is also participating in the round.
The funding round values Growth Street at £27.5m. It underscores Growth Street’s ambition to be the next disruptive force in UK fintech. As the UK prepares for its exit from the EU, the Merian Chrysalis portfolio management team believes that Growth Street can shake up an ossified lending market and accelerate loan book growth. Growth Street supports growing, profitable SMEs with GrowthLine, a transformation of the traditional bank overdraft, delivering flexible facilities up to £2m.
Commenting on the announcement, Growth Street co-founder and CEO Greg Carter said: “New regulations and technologies are driving rapid change within business lending. In a short period we have proven that ambitious businesses can thrive with GrowthLine. We are now working to expand access to GrowthLine and strike new relationships throughout the financial services ecosystem.
“I’m delighted Merian and leading investors share our view that business owners deserve better.”
Thomas Hoegh, Growth Street co-founder and investor, said: “Having built and backed more than 50 tech businesses, I have experienced entrepreneurs’ struggles first-hand. With Growth Street, we give business owners the financial flexibility they need, right when they need it. As businesses scale over the coming years, Growth Street will be there to support them.”