Digital lender Oakam secures £35m investment
Written by Chris Lemmon
UK digital micro-lender Oakam has announced that it has secured a £35 million debt investment from Victory Park Capital Advisors.
Through its digital-first approach and use of alternative data in its underwriting process, Oakam says it is able to evaluate more applicants at a lower cost than traditional lenders. The company has built a strong track record of growth in the decade since its launch in 2006, with its loan application levels growing by 300 per cent in 2017 to date.
The company will use the new funds to accelerate its lending activity in the UK by more than 180 per cent year-on-year and further expand its offering internationally.
Frederic Nze, CEO and founder of Oakam, said: “Consumer credit has long been broken for those at the bottom. With 12 million financially excluded consumers in the UK alone, there is a significant opportunity for Oakam to fill the large unmet need for better, more accessible and affordable credit. Our new partnership with VPC will enable us to further fulfil our mission of transforming and empowering lives through a fair and inclusive service.”
Gordon Watson, partner at Victory Park Capital, added: “Oakam’s model in micro-finance that captures the value of a digital approach without overlooking the role of human interaction has enabled the team to break into a highly competitive market.
“Our investment follows a long-standing track record at VPC of supporting FinTech companies scale and provide financing where traditional means fall short. We look forward to supporting Oakam’s continued growth.”