Leading peer to peer lending site LendInvest has received a £22 million investment from Chinese internet firm Beijing Kunlun. This is according to an article in the FT but was also referenced in a Board Meeting release from earlier this week.
Christian Faes, co-founder and CEO of the mortgage lender was quoted on the transaction;
“You have seen peer-to-peer take off in lending to consumers and businesses, and now property and mortgages is the next big thing.”
The discussion from Kunlun stated LendInvest has facilitated approximately £320 million in loans. The company generated £15 million in revenue netting out £3.089 million for the fiscal year ending in March 2015. LendInvest was described as one of the fastest growing peer to peer lenders in the UK having a 16% market share.
While peer to peer lending has its origins in the UK, China is the largest market in the world. One estimate places total loan volume at over $53 billion for 2014. While the market may be the largest the regulatory environment has been lax causing a plague of dodgy platforms and risky borrowers.
A growing number of large Chinese firms have been looking outside their borders for expansion. Alibaba recently partnered with Lending Club in the US and several platforms in the UK.
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