Iwoca, a UK-based lender dedicated to small and medium-sized enterprises (SMEs), has secured a substantial £200 million debt funding package from Citi and Waterfall Asset Management. This new investment will empower Iwoca to extend its lending capabilities and support more SMEs across the country. The company is preparing to double the maximum loan offer of its core product, the Flexi-Loan, which will increase from £500,000 to £1 million.
Iwoca’s embedded lending solution is a standout feature that integrates with third-party platforms and neobanks, utilizing a sophisticated credit risk engine that ensures precise credit decisions based on business performance. In 2024, Iwoca issued £730 million across 35,000 loans, showcasing a remarkable year-over-year growth of 76% in lending and 82% in loan transactions. This achievement builds on a £270 million funding package from April, where Citi also played a critical financing role alongside Insight Investment. Since its inception in 2012, Iwoca has amassed nearly £1.5 billion in debt funding.
The overarching trend indicates robust development and substantial backing for the SME sector, driven by innovative lending solutions. This funding infusion and product expansion aim to bolster medium-sized businesses, reflecting Iwoca’s commitment to fostering growth within the SME market. With the new funding, Iwoca is well-positioned to address the increasing demand for business loans, ensuring that SMEs have the financial resources needed to thrive and expand in a competitive marketplace.
