Growth Street aims to transform fintech business lending with £7.5m funding round
Signalling a ‘vote of confidence’ in British fintech, business lending firm Growth Street has raised a £7.5m scaleup investment round.
This has been led by the Merian Chrysalis Investment Company Limited (Merian Chrysalis).
Asset manager, Merian Global Investors has joined forces with individual investors including Rob Rankin, former co-head of corporate banking & securities at Deutsche Bank, and Peter Brodnicki, CEO of 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, who are also participating in the round.
Growth Street’s 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 investors share our view that business owners deserve better.”
Merian Chrysalis is advised by asset management firm Merian Global Investors, which has a total of £31.6bn under management. The funding round values Growth Street at £27.5m.
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, said to be a transformation of the traditional bank overdraft. Powered by Open Banking and cloud accounting integrations, GrowthLine delivers flexible facilities up to £2m.
Thomas Hoegh, Growth Street co-founder and investor, added: “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.”
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