A London-based cashflow management platform has raised £49m in Series A funding.
The SME finance landscape is undergoing a fundamental shift as banks retreat from business lending, leaving a staggering £22bn SME funding gap in the UK.
Enter Lenkie, a startup aiming to transform how growing UK businesses access capital.
Its unique focus on payables financing – paying suppliers directly on behalf of SMEs at the beginning of a transaction – ensures businesses can secure the resources they need upfront to finance growth-related expenses.
Founded in 2021 by Sanjeev Jeyakumar and Nnaemeka Obodoekwe, Lenkie has demonstrated strong market traction, funding over £70m to underserved SMEs and funding payments to 2,000 suppliers across 40 countries.
It leverages proprietary underwriting technology and real-time performance data to deliver bespoke financing solutions that it says dramatically enhances speed and financial inclusion.
The funding round, which includes £4m in equity and a £45m debt facility, was led by a large US private credit fund focused on supporting lenders internationally.
“At its core, all lending is built on a foundation of trust,” said CEO Jeyakumar. “We’re able to use data and technology to understand the nuances of each business to build that trust in seconds.
“This enables us to provide fast and flexible capital when it’s most impactful. By financing specific transactions we’re creating a new model of financial inclusion that aligns with how modern businesses operate and grow.”
Jeyakumar, a former Citigroup credit trader, saw first-hand the power of real-time data to de-risk financing in underserved markets, whilst structuring over £2bn in lending across emerging markets.
Whilst building a venture-backed B2B marketplace helping small business owners access logistics services, he was exposed to thousands of entrepreneurs navigating the challenges of scaling.
“The challenge wasn’t a lack of growth opportunities, it was a broken borrowing experience. By removing friction and making access to capital effortless, we could unlock immense potential and help entrepreneurs realise their ambitions,” he continued.
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