Funding Xchange (FXE), a company that helps people and organizations find suitable business loans and funding options from its marketplace of more than 45 established lenders, has raised £8 million (appr. $10.4 million) through an investment round.
FXE’s decisioning platform is used by UK-based Monzo, a digital mobile-only bank, Experian, a multinational credit reporting agency, and MoneySuperMarket, an internet-based price comparison business that specializes in financial services and more.
Downing Ventures and Gresham House Ventures took part in Funding Xchange’s latest investment round. The UK-headquartered firm says it will use the capital raised to further expand its operations and aims to continue working with banks and alternative lenders, which provide funding quotes and deliver funding within minutes.
Katrin Herrling, a former dairy farmer, established the company after the global financial crisis of 2008 that saw her farm’s borrowing rates increase dramatically. This motivated her to provide a service that offers more funding alternatives for SMEs.
Former Experian executives Max Firth (now managing director at FXE) and Paul Henry (now chief operating officer at FXE) are now part of Funding Xchange’s growing team.
The company’s white label “lending in a box solution” digitizes the entire underwriting process, and Herrling says it’s a solution to the challenges faced by SMEs that are seeking business loans.
Herrling believes the latest investment round will help her firm “provide small businesses with the same transparency and ease of access to finance that consumers have become accustomed to.” She says that the funding will also “help reshape a sector that is rapidly adopting digital solutions.”
The company is now focused on offering the best decisioning solutions to financial institutions and lenders, while also improving the delivery of its data analytics software.
Daniel Cheung, an investor from Downing Ventures, says that FXE is addressing “some of the biggest challenges that banks and SME lenders face as the market is undergoing unprecedented change.”