UK-based peer-to-peer lending startup Elfin Market is set to close its equity crowdfunding campaign on Seedrs with more than £700,000 secured. The funding round was launched in January and quickly surpassed its initial £400,000 funding target. Elfin is currently offering 5.80% in equity through the funding round at a £6,502,400 pre-money valuation.
As previously reported, Elfin labels itself as the world’s first peer-to-peer lending platform where borrowers get a line of credit that they may draw upon as often as they, with the same flexibility as a credit card.
“Elfin Market wants to disrupt the credit card market and offer a fair and affordable alternative to ‘traditional’ credit cards. To do that, we use peer-to-peer lending. That means we directly connect borrowers and lenders without costly intermediaries. With 5.8% representative APR, our line of flexible credit, the Elfin Purse, is 75% cheaper than the average credit card, and comes with no additional fees.”
Elfin also noted that it is working on adding a payment card, the Elfin Card, which will be directly linked to the borrower’s Elfin Purse to make it even closer to a regular credit card.
“Lenders lend their funds to our borrowers, who have all passed our strict credit checks (we’ve approved less than 7% of borrower applications so far). These funds are used to finance the flexible lines of credit our borrowers receive. Our lenders enjoy attractive returns, automated diversification and flexibility on their investments. Also, thanks to our Innovative Finance ISA, they can earn tax-free interest.”
Funds from the campaign will be used for the following:
- Hire 2 developers to further build up in-house capabilities, including the launch of iOS and Android apps
- Make additional hires for customer support, community management, and marketing
- Cover Elfin’s operating costs for the next year (including the launch of the Elfin Card and an increased marketing budget)
The campaign is set to close later this week.
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