Lending Works, a peer-to-peer lending platform, has closed a Series A investment round, raising £3m. Newcastle-based investor NVM Private Equity contributed £2m to the round in early June 2016.
Lending Works, which claims to be the third-largest consumer P2P lender in UK, offers insurance against borrower default risks such as accident or loss of employment.
Nick Harding, founding CEO of Lending Works, said he was “delighted” about NVM Private Equity’s investment.
“They bring significant experience in key areas including business scalability, risk and business development and we consider their backing to be a ringing endorsement of our rapid progress as a company,” he added.
Harding went on to say the investment comes at an exciting time for the company, as it prepares to launch its Innovative Finance ISA, which will enable lenders to earn tax-free returns through the Lending Works platform.
NVM Private Equity specialises in SME investments typically between £2m and £10m. it has invested in over 270 SMEs in the UK in the past three decades, and currently manages over £300m in private equity funds.
With the investor’s support, Lending Works plans to focus on partnerships in order to grow the business and reach its lending target of £50m this year.