United Kingdom-based cash flow financing platform MarketInvoice didn’t have any trouble raising capital after the region voted to leave the European Union, as the peer-to-peer lender confirmed the close of a successful £7.2 million raise this week. The funds are earmarked for marketing and product development.
The round was led by MCI.TechVentures Fund, an arm of MCI Capital Group which has existing stakes in smartphone and tablet POS system developer iZettle, international money transfer platform Azimo, Uber competitor Gett and and online fine products auctioneer Auctionata. Previous investor Northzone also increased its investment. MCI Capital is a private equity group listed in Poland.
MCI Capital senior partner Sylwester Janik said MarketInvoice possesses a unique value proposition.
“MarketInvoice is a prime example of a truly innovative business that’s redefining an age-old sector of traditional finance. They provide vital working capital to a continuously underserved segment of customers where incumbents are reluctant to innovate.
“We see a massive opportunity for MarketInvoice to further consolidate its dominant market position in a rapidly growing sector, as well as lay the foundations for future geographical expansion.”
Mr. Janik, who joins MarketInvoice’s board with the investment, said that instead of being a detriment, Brexit was actually a positive.
“With the result of the UK referendum, many might perceive investing in fintech as a risk. With MarketInvoice it’s actually the opposite. We see an economic slowdown and a distracted banking sector as a potential opportunity to fuel the growth of the platform.
“Through its prudent risk management, we believe MarketInvoice is well-prepared to deal with changing market sentiment in the future.”
MarketInvoice CEO and co-founder Anil Stocker also sees opportunity in the post-Brexit environment.
“Recent intervention by the Bank of England suggests we might see significant reductions in bank lending. As in the aftermath of 2008, peer-to-peer lenders can once again step in to provide that funding when banks move slowly.”
MarketInvoice added former American Express staffer Lisa Gervis as chief marketing officer and former Sky IQ and Experian employee Rupert Thorp as director of sales.
As it nears the £1 billion funding milestone, MarketInvoice, founded in 2012, said it provides more than £1.5 million in daily cash flow financing to UK businesses.