SF Holdings Company Plc, parent of MCC SimpleFinance LLC, a Russian fintech company providing lending to small and medium-sized businesses, completed its debut equity fundraising with an investment from the SBI FinTech Business Innovation Fund LPS.
The amount of the deal – which comes less than three months after the company priced its debut Eurobond issue of USD$30m, with a 3-year tenor and a coupon rate of 10.5% per annum – was not disclosed. In conjunction with the funding, SBI FinTech Fund will gain a seat on the Board of Directors of SimpleFinance.
The company intends to use the funds for new loan issuance to continue growing its lending portfolio, which has expanded by 110% since 1 January 2017.
Founded in 2015 by CEO Alexey Basenko, SimpleFinance offers a unique product line of affordable financing tools for small and medium-sized businesses in -Russia, including:
– Factoring – liquidity financing backed by accounts receivable
– Asset-backed loans – general purpose financing secured by residential or commercial real estate for a period of up to 10 years
– Commercial mortgages – funds for real estate purchase of any purposes
– Unsecured loans – working capital financing
– Tender loans – provision of funds for securing bids and for executing government contracts
In addition, the company has built its own P2P platform, called SimplyFi, for small and medium-sized businesses to raise funds directly from private investors, and TenderHub, a platform for all tender loan related needs.
SimpleFinance is licensed by the Central Bank of Russia and is a member of the Association of Factoring Companies.
SBI FinTech Business Innovation Fund, part of SBI Investments, is a JPY 30 billion (USD$271m) vehicle that was launched in June 2016 to invest in promising venture companies in the FinTech field.