On Friday, UK-based peer-to-peer lending platform Landbay announced the completion of its latest crowdfunding round on Seedrs, which attracted a grand total of £2,440,266. Gray Stern, co-founder and chief commercial officer at Landbay, revealed to UKTN (formerly Tech City News):
“This was a bridge round funded by existing investors. The funds will enable us to continue to expand our operational capacity as we ramp up lending, as well as launch new mortgage and investment products.”
The latest round of funding comes just a little over a month after Landbay celebrated its third birthday. At the time, the online lender announced it has lent a total of £47.31 million in the past three years. Co-founder John Goodall shared at the time:
“Launching any business from scratch presents many big challenges. As a peer-to-peer lending business, we need to attract creditworthy borrowers and investors and ensure that the supply and demand matches. For investors, one of the key things that we needed to do was build trust. As a start-up lender with no track record, you cannot do that overnight, so getting the credit function right was crucial. Now that we have been lending for 3 years with an unblemished lending performance, I think that we have reassured investors and built that trust. We now have over 4,000 registered users and the average amount of funds that investors have lent on the platform has consistently grown over the 3 years.”
The lender was granted ISA Manager Status by HMRC and launched its propers-backed ISA earlier this summer. Goodall and Gray Stern launched Landbay with the help of equity crowdfunding platform, Seedrs. Prior to the website even going live, the duo raised seed capital on the funding portal for their vision of mortgage finance. Their first funding round was for only £50,000 in SEIS eligible seed funding. Since then, Landbay has launched six other Seedrs campaigns, with the previous initiative attracting more than £1.6 million, which includes an investment from tennis star, Andy Murray.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!