The booming popularity of peer to peer lending helped London start-up Funding Circle’s revenue jump 177 per cent last year.
Accounts filed with Companies House reveal revenue climbed from £1.9 million in 2012 to £5.3 million in 2013. Losses were steady, rising from £3.8 million to £3.9 million due to continued investment in expansion.
Chief executive Samir Desai said: “It was a fantastic year for us. We exceeded the targets we set for ourselves and we entered the US. The losses were still there but we intended for them to be there as we were investing in growth.“
Funding Circle, founded in 2010, allows savers to lend money directly to small and medium sized businesses through crowdfunded loans. Over 30,000 people in the UK have used the site since its inception. A total of £380 million has been lent to businesses, with £180 million of that total handed out in the year so far alone.
Desai revealed that September was a record breaking month for the service in the UK, with a total of £28.6 million leant to businesses.
The business raised $65 million in July and Desai said this would be used to fund expansion of its US business, which he said was “turning out incredibly well”.
Desai added: “The business could be profitable if we wanted it to be but we’re investing quite heavily in technology and in growth in places like the US.”
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Desai indicated that the business was eyeing expansion into Europe, with a move likely within a year.
Since April, the peer to peer lending industry has been regulated by the Financial Conduct Authority, but Funding Circle said in its accounts that it welcomes the changes and said it would have little impact on business.Reuse content