The UK government is still in negotiations to leave the EU and that has put extra strain on the housing market in the United Kingdom. To circumvent this, startups are bringing new and innovative ways to financing houses in hopes of saving the British real estate industry.
Today, LendInvest, a peer-to-peer platform that connects property buyers in the UK with people willing to finance those purchases (bypassing traditional mortgage lending infrastructure in the process), announced that it has raised around $39.5 million (around £30.5 million) in a Series C round of funding led by existing investor Atomico, which participation also from GP Bullhound and Tiger Management (founded by hedge fund investor Julian Robertson).
The plan will be to use this funding to continue to develop its technology and grow business into more the traditional (and bigger) mortgage business. A spokesperson for the company says there are no plans to extend beyond the UK market for now.
LendInvest is currently profitable, albeit modestly, with Ebitda of about $2.8 million on gross group revenues of $70 million in the 12 months that ended in March of this year, and it says this round is likely to be the last before it lists publicly.
“Having recorded a fourth consecutive annual profit, raising capital wasn’t a necessity for LendInvest but by beefing up our balance sheet and bringing on some very experienced additional investors, we are well placed to capitalize on opportunities in the future,” said Christian Faes, co-founder and CEO of LendInvest, in a statement. “Using technology LendInvest is building a new kind of financial services business, and an extremely scalable platform, which is changing the way mortgages are funded and work in the UK.”
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