iwoca has secured a new funding line of £200 million from Citi and Waterfall Asset Management to support record demand for SME finance.
The London firm, one of Europe’s largest SME lenders, is expanding further into medium-sized businesses by doubling the size of its core product — the Flexi-Loan — to £1 million.
iwoca has seen record commercial growth, placing it among the top 10 UK FinTechs by both revenue and profit alongside the likes of Monzo, Starling and Revolut, according to the latest available figures.
iwoca first hit net profitability in Q4 2022 and has remained in the black since. It brought in £143m in revenue in 2023.
The funding follows a series of investment rounds in the past two years, attracting £740m debt funding from partners including Citi, Barclays, Värde Partners, Pollen Street Capital, and Insight Investment.
It takes investment in the business to almost £1.5 billion since launching in 2012.
“Our vision is to become ever more relevant to more businesses. Medium-sized businesses tell us that – just like smaller businesses – they are finding it difficult to access working capital finance,” said Christoph Rieche, CEO and co-founder.
“Therefore we have stepped up our offering to also meet their needs with £1 million loans.
“We’re very happy to expand our cooperation with Citi and look forward to being able to finance many more SMEs in the UK with their support. Like so many SMEs, it’s been a rollercoaster over the last decade.
“The iwoca team has stuck together to ride through the ups and downs and we’re humbled to have now grown to a size where we make a material impact on thousands of SMEs and their communities every month.”