Funds will be used to building additional loan distribution channels, growing the team and through continued investment in the technology platform.
The business was founded by Nick Harding (CEO) in 2012 after identifying the opportunity to provide consumers with a safe and simple P2P proposition.
The Lending Works platform allows lenders to receive higher returns than those available from a traditional bank whilst borrowers secure funding more cheaply than available elsewhere. As part of the differentiated proposition Lending Works provide lenders with a unique protection against borrower default risk.
The market has been through, and continues to experience, exponential growth with P2P lending volumes totalling £2.8bn in 2015 and are forecast to reach £4.3bn in 2016, according to AltFi Data.
With the introduction of the Innovative Finance ISA (IFISA) and the new FCA P2P legislation, the market is expected to accelerate significantly as there is a growing acceptance and awareness of P2P lending as a mainstream financial offering. As a result of these factors, the company anticipates it will rapidly grow loan volumes and Lending Works’ strategy to take on a variety of new partners being key to deliver this.
Nick Harding, founding CEO of Lending Works, said: “We’re delighted to announce the recent investment in our business by NVM Private Equity. They bring significant experience in key areas including business scalability, risk and business development and we consider their backing to be a ringing endorsement of our rapid progress as a company. This latest investment comes at an exciting time for Lending Works.
We’re expecting to launch our new IFISA imminently, which will allow lenders to earn tax-free returns through our platform. Needless to say, it sets the foundations for continued growth which will be well supplemented - and driven - by this new investment.”
Charlie Pidgeon of NVM Private Equity said: “We have a strong track record of investing in successful technology businesses with dynamic management teams and we see real potential for Lending Works.
“We believe the P2P market has significant growth ahead and through the partnerships the company has built over the last 12 months the business will be able to scale rapidly post investment. We are excited to be an investor at this point of the company’s development and look forward to supporting Nick and the team in the next phase of growth.”