CapitalRise has closed a £2m Seed with participation from the family of renowned banking entrepreneur Rana Kapoor, founder of India’s fourth largest private bank YES.
The online property lending and investment platform will use this latest funding to support company growth, expand the team and open up new property investment opportunities in London and other locations across the UK.
The family of Raakhe K Tandon established YES Bank in 2004. The bank currently operates 1,100 branches in India, employing over 18,000 people with a market cap of £8.5bn.
Commenting on the decision to invest Tandon said: “We are delighted to have partnered with CapitalRise. The size of the market opportunity and quality of the management team, gives us immense confidence that CapitalRise will be a formidable platform for online crowd sourced property finance. We look forward to working with shareholders and management with a combined ambition of making CapitalRise highly successful and a leader in its field.”
Launched by the founders of Finchatton, Alex Michelin and Andrew Dunn, CapitalRise provides members with direct access to development and investment projects they would not ordinarily be able to access. CapitalRise members can invest from as little as £1,000 and receive ISA benefits. The company claims to have doubled its investor base in the past 12 months.
Uma Rajah, CEO at CapitalRise, said: “This investment comes at the perfect time for CapitalRise. Over the past 19 months we have built our technology platform and proved our business model, having already paid out over £2 million back to investors.
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“Our latest opportunity was fully funded in under two business days, witnessing, on average £730,000 of funding raised from our members each working day (with a waiting list of members ready to invest in our upcoming projects). This seed funding will underpin our next stage of growth, helping us to grow the team and pursue more opportunities for investors and developers alike.”
CapitalRise offers both debt and equity funding, with products including bridging loans, development finance, and development exit loans.
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