Selina Finance raises £42m Series A funding

Digital lender Selina Finance has completed a £42 million Series A fundraise, including £12 million in equity and £30 million in debt lines, ahead of launching a consumer product later this year.

The equity funding, raised from Picus Capital, Global Founders Capital and others, will enable the business to accelerate its growth plans and investment in technology. The debt lines will be used to support more small businesses and consumers across the UK.

Founded in 2019 by Andrea Olivari, Hubert Fenwick and Leonard Benning, the London-based firm offers overdraft-style credit facilities up to £1 million which allow borrowing against the equity tied up in homes or investment property.

In contrast to existing providers, the solution has no setup, early repayment, or valuation fees. Also, unlike conventional term loans, it has built-in flexibility: borrowers can draw and repay funds whenever they choose, and pay interest on what is outstanding.

Selina Finance's credit facilities are secured against physical property, meaning customers can borrow much larger amounts at more competitive rates - starting from 4.95 per cent APR - versus unsecured loans.

Selina Finance’s automated platform allows borrowers to go from application to funding in less than five days, via an entirely online process. Proprietary technology powers the valuation and underwriting process, enabling loans without the need for property surveyors or other face-to-face visits. The new funding will be used to develop this technology even further, making access to credit for property owners more seamless.

It works with more than 200 commercial finance and mortgage distribution partners across the UK and is planning to offer its product to UK consumers later in 2020. Since lending started last year, the firm has recorded zero defaults and no arrears.

Co-founder Andrea Olivari commented: “This Series A funding is a significant milestone in Selina Finance’s mission to offer homeowners flexible and affordable credit - despite the uncertainty and disruption caused by COVID-19, our investors have demonstrated their belief in our unique proposition and the team we have built to bring our vision to the UK market.”

Robin Godenrath, managing director at Picus Capital, added: “The team impressed us with their strong focus on building a fully digital customer experience and have already achieved great product-market fit with their business loan use case.”

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