Selina Finance, a London, UK-based digital lender, completed a £42m Series A funding.
The funding includes £12m in equity from Picus Capital and Global Founders Capital and £30m in debt lines.
The company intends to use the funds for growth to accelerate its growth plans and investment in technology as it prepares to enter the consumer lending market later this year, subject to regulatory approval. The debt lines will be used to support more SMEs and, post-regulatory approval, consumers across the UK.
Founded in 2019 by Andrea Olivari, Hubert Fenwick and Leonard Benning, Selina Finance offers credit facilities up to £1 million which allow SMEs and consumers to borrow against the equity tied up in their homes or investment property. The company says the solution is with no setup, early repayment, or valuation fees – and has flexibility to allow borrowers to draw (and repay) funds whenever they choose, and pay interest on what is outstanding.
Selina Finance’s credit facilities are secured against physical property, meaning customers can borrow larger amounts (up to £1 million) at competitive rates (starting from 4.95% APR) versus unsecured loans. Selina Finance works with more than 200 commercial finance and mortgage distribution partners across the UK and is planning to offer its product to UK consumers later in 2020.