Fintech provider raises over £100m finance to challenge UK's inflexible lending habits
Finance and tech provider Sonovate has secured £110m debt and equity finance.
This latest round of investment - following Series B funding secured in October 2016 - led by Global Founders Capital, the investment vehicle of Rocket Internet, and supported by Dawn Capital. Dawn also led Sonovate’s Series A funding round earlier that year.
Launched to challenge traditional invoice finance products on offer from the banks, Sonovate helps any business working with contingent workers to ‘unlock their potential’.
As traditional lending has been uncertain for SMEs since the 2008 financial crisis, Sonovate reduces this complexity and provides upfront funding against unpaid invoices.
The company has funded almost £1bn of invoices for recruitment agencies, consultancies and on-demand vendors since launching in 2012.
Richard Prime, Sonovate’s co-CEO, said: “The world of work is changing rapidly with more and more highly skilled individuals deciding to work on a more contingent basis.
“But businesses working with contract workers, including recruitment agencies and consultancy businesses, must pay their contractors multiple times before receiving payment from their clients, typically 45 to 90 days later.
“This severely impacts cashflow and poses a huge risk to businesses - Sonovate removes this burden and risk altogether. We’re on an incredible journey, consistently doing what the banks say isn’t possible!”
This latest capital into Sonovate will enable the company to advance its core product offering and reach new international markets including Germany, the Netherlands and America.
Kevin Haupert, director at M&G Investments, added: “The management team at Sonovate has a clear understanding of what companies in the recruitment and manpower sector require, resulting in an innovative offering fit for purpose for the digital age.
“This investment from our pension fund and institutional clients will enable Sonovate to expand its business, unlocking further much-needed capital to SMEs across the UK.”
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