A FinTech company seeking to change the way online businesses raise funds has closed a £115 million Series A round of equity and debt investment.

London-based Outfund has become the largest revenue-based FinTech lender in the UK, Spain and Australia.

The funding round was led by Force Over Mass, PostFinance, 1818 Venture Capital and Tribe Capital. The firm says it will support rapid global growth as it provides a faster, fairer and more affordable way for SMEs to raise growth capital across the globe. 

Founders seeking capital can apply for finance using Outfund’s online application. Its technology removes the need for companies to provide business plans or go through prolonged risk assessments: businesses simply connect their revenue accounts and, with access to this data, Outfund will build a funding offer and deploy the same day. 

Outfund can deploy between £10,000 and £10m of funding, and is available to businesses that take online payments, have a minimum of £10,000 monthly turnover, and have been trading for at least six months.

Unlike conventional business loans, Outfund ensures the time taken to repay is based on each businesses’s circumstances, with an agreed revenue share creating flexibility for founders. Outfund’s revenue-share percentages are set to ensure each business maintains a healthy cash flow in its day-to-day operations; the better the company does, the better Outfund does. 

Outfund achieved significant growth in 2021, expanding revenues sixfold and expanding into three new countries. With its wider reach and new capital, it is set to loan over £500m in 2022 and expected to fund over 5,000 businesses across the globe. 

Outfund is now pledging to invest more than £500m of lending to over 5,000 businesses in the next 12 months and will increase its lending limit to £10m per company.

We started in a Portakabin – now we’re a multi-million-pound tech business

“As a second-time entrepreneur myself, I experienced first-hand the complex, timely and often imbalanced nature of the old-school financing routes. I knew there was another way and so decided to build it,” said CEO Daniel Lipinski.  

“Our ambition is for Outfund to be the place to go to grow your business, without compromising your equity or wasting time fundraising. This is why we have spent time developing a way to make the process of securing money for growth easier, fairer and, most importantly, faster. 

“Our approach has been warmly received by the founders and directors so far, and now we’re looking at how we can open this up to more businesses and continue to be part of their journey to success for a long time.

“The last six months have shown relentless growth for the business and I am proud of the number of entrepreneurs we have been able to support in this time.”