Sonovate, the provider of embedded finance and payment solutions for the contingent workforce, announced that it has completed a securitization deal with BNP Paribas and M&G Investments, “adding £165 million to its funding structure.”
The deal is “an endorsement of Sonovate’s position as a Fintech industry leader and reinforces its high-growth trajectory, enabling it to lend over £1.3 billion in invoices this year alone.”
The company is “projected to fund another £2 billion in 2023, with further plans for growth in subsequent years.”
Demica, the working capital focused fintech, “acted as adviser and reporting agent on the transaction, working closely with both Sonovate and BNP Paribas.”
M&G Investments, Sonovate’s long term funding partner, also “took part in the agreement, with a £15 million investment.”
As a result of this securitization, Sonovate will “increase its capital efficiency and expand its customer base, especially in the enterprise space.” It will also “deliver added flexibility for export financing.”
Richard Prime, CEO and Co-Founder of Sonovate said:
“Sonovate’s vision is to be the funding platform for the future of work. As we scale, we will continue to integrate into the wider ecosystem with the aim of constantly adding value in our market. Deals such as this one provide us an exceptional level of flexibility, which we can extend to our customers, enabling them to access innovative funding solutions via a state-of-the-art platform.”
Increasingly, technology is transforming the world of finance, “providing businesses with new opportunities to manage their working capital and move beyond traditional funding options.”
Renaud Chalmet, Deputy Head of Corporate Receivables Securitization, BNP Paribas, said:
“This securitization is designed to support the new world of flexible working. It is scalable, adaptive, and provides stability in the long term. We are excited to be working with Sonovate, supporting them as they continue to deliver rapid growth and empower the contingent labour marketplace with innovative solutions.” .
As a result of the tech revolution and the move towards flexible working, the contingent labor market place is “growing very quickly.”
According to a report in March 2022 by the Staffing Industry Associates (SIA), annual sales revenue “is up by a staggering 80% for contract placements.”
Sonovate has “funded more than £2.75 billion in invoices to date. Last year, the company recorded a 58% year-on-year increase in total funding.”
Its enterprise lending volume “increased by 144% year on year, and enterprise customers now account for about one-third of its total lending volume.”
More than 3,300 businesses “funded by Sonovate have paid more than 30,000 freelancers, contractors, and gig workers in over 40 countries.”