RateSetter Raises £13M in Equity Funding

RateSetter, a London, UK-based peer-to-peer lending platform, raised £13m in equity funding.

Backers included existing shareholders Woodford Investment Management and Artemis.

The round valued the business at over £200m.

The company, which has raised over £40m in total capital since its launch in 2010, will use the funds to scale up the business ahead of the anticipated launch of its Innovative Finance ISA.

Led by Rhydian Lewis, Founder and CEO, RateSetter is a peer-to-peer lender offering both consumer and business loans from investors, originating close to £2bn of loans to date. The company, which has over 300,000 active investors and borrowers on its platform, pioneered the Provision Fund model, which allows borrowers to pay a risk-adjusted premium and reimburses investors in the event of a borrower default. The Provision Fund has a 100% track record to date, but capital is at risk and RateSetter is not covered by the Financial Services Compensation Scheme.
In addition, RateSetter’s interest rate is set by the supply and demand of money, not by the platform itself.

Regulated by the Financial Conduct Authority, the company also operates in Australia having recently passed AUS$100m of volume.

Paul Manduca, the Chairman of FTSE 100 global insurer Prudential, will become RateSetter’s Chairman in July 2017.



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