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.”
Faes revealed that his firm had been in search of the right partner for some time. The capital injection was described as a stepping stone for an IPO that may take place within the next year.
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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