Iwoca, the London-based Wonga-like business lending start-up launched in 2012, has raised £5m in equity and debt funding from Global Founders Capital and Redline Capital Management, along with existing investors. This adds to the initial £2m of funding that Iwoca raised this time last year. Iwoca lends small businesses up to £50k via its website for a maximum of six months with monthly interest rates between 2-7%.
Setting aside any discussion on the interest rates, there appears to be demand for the service, with media reports of Iwoca generating ‘revenues’ of £1m last year (I wonder if they actually meant loan value rather than revenue), though there was no mention of profitability. Iwoca plans to use the funds to expand operations in the UK and into Europe.