Barclays has reportedly led Funding Xchange’s (FXE) Series B round, which is said to be open to a number of FXE clients.
The fundraising is bringing together key investors and will aim to enhance FXE and its ability to drive ecosystem adoption.
This reportedly includes digital tools that improve transparency, positive customer outcomes and more streamlined lending processes for banking institutions as well as lenders.
FXE reportedly offers white-label software solutions for banks and lenders “as well as developing industry-wide solutions that brings SMEs together.”
Furthermore, FXE products have been “adopted by 80 of the most innovative high street banks, challengers and specialist lenders.”
Ryan Hayward, head of strategic investments for Europe and Asia at Barclays, said:
“We have chosen to back FXE as we see the opportunity to transform an industry that has not kept pace with the consumer market in the adoption of digital technologies. The team at FXE brings together the right mix of skills and experience and they have built an impressive technology and insights platform. The strength of the team and their track record as innovators makes us excited about the prospects for the business.”
Katrin Herrling, CEO and co-founder of Funding Xchange, commented:
“This investment creates a unique opportunity for Funding Xchange to drive the transformation of the wider SME lending ecosystem. We are delighted that Barclays shares our vision and approach to close collaboration focused on rapidly unlocking tangible benefits for businesses and banks.”
Sarah Hollyhead, MD of Funding Xchange, commented:
“It has been a pleasure to work with Ryan and the Barclays Principal Investments team on delivering this transformational investment into Funding Xchange. Our client-led Series B is fantastic recognition of the client advocacy our team has built.”
Barclays recorded a profit before tax “of £6.6m ($8.3m) over 2023, a 6% drop year-on-year.”
However, group income for Barclays “totaled £25.4bn over 2023, a 3% increase from 2022.”
In addition, Corporate and Investment Bank (CIB) income “fell 4% to £12.6bn, attributed to lower client activity in both Global Markets and Investment Banking, but this was partially offset by a strong performance in Corporate driven by Transaction Banking.”
Consumer Cards and Payments (CC&P) income “increased 18% to £5.3bn due to higher balances in US cards and favourability from higher rates and client balance growth in Private Bank.”
As noted in the update, Barclays Group total operating expenses “were £16bn in 2023, up 2% year-on-year.”
