£42m Series A round for digital lender Selina Finance
Posted on July 29, 2020 by Jonathan Symcox
Digital lender Selina Finance has completed a £42 million Series A fundraise.
The funding includes £12 million in equity and £30 million in debt lines and will boost the company’s growth as it looks ahead to launching a consumer product later this year, subject to regulatory approval.
The equity funding, raised from a range of leading FinTech investors including Picus Capital, Global Founders Capital and others, will enable the business to accelerate its growth plans and investment in technology.
The £30m in 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 overdraft-style credit facilities up to £1m which allow SMEs and consumers to borrow against the equity tied up in their homes or investment property.
In contrast to existing providers, the solution is fee–less – with no set–up, early repayment, or valuation fees.
Unlike conventional term loans, borrowers can 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 much larger amounts – up to £1m – at more competitive rates versus unsecured loans.
“We’re bringing a completely new product to the lending market which, unlike a conventional loan, offers customers real flexibility. Our customers can save time and money by only drawing down and repaying when they need to without the need to re-apply, plus the product is feeless and transparent which is what customers have come to expect in the 21st century,” explained co-founder Leonard Benning.
The firm’s automated platform allows borrowers to go from application to funding in less than five days – and the process is entirely online.
Advanced proprietary technology powers the valuation and underwriting process, enabling loans without the need for property surveyors or other face-to-face visits.
“Homeowners deserve to be able to unlock the value tied up in the home they’ve worked so hard for, both at an affordable price and in a flexible manner. We want to help people tap into their real estate wealth whenever they need to borrow funds, by making the whole process, from application to funding, as seamless and as fast as possible,” added co-founder Hubert Fenwick.
Selina Finance works with more than 200 commercial finance and mortgage distribution partners across the UK.