Sonovate raises £110m for international expansion
Written by Peter Walker
Sonovate has secured £110 million debt and equity finance, led by M&G Investments, MXB Holdings, Dawn Capital and Rocket Internet.
This latest round of investment follows Series B funding secured in October 2016, led by Global Founders Capital, the investment vehicle of Rocket Internet, and supported by Dawn Capital. Dawn also led the previous Series A funding earlier that year.
The finance and back-office tech provider to recruitment agencies and consultancies was founded in 2012 to challenge traditional invoice finance products on offer from banks, funding almost £1 billion of invoices since then.
This latest injection of capital will enable the company to advance its core product offering, reach into new international markets - including Germany, the Netherlands and America - and optimise finance for small and mid-market businesses.
Richard Prime, Sonovate’s co-chief executive, explains: “The world of work is changing rapidly with more and more highly skilled individuals deciding to work on a more contingent basis.
“But businesses working with contract workers, including recruitment agencies and consultancy businesses, must pay their contractors multiple times before receiving payment from their clients, typically 45 to 90 days later – this severely impacts cashflow and poses a huge risk to businesses.”
Kevin Haupert, director at M&G Investments, says: “This investment from our pension fund and institutional clients will enable Sonovate to expand its business, unlocking further much-needed capital to SMEs across the UK.”
Prime concluded: “M&G has been at the forefront of providing financing to companies who were traditionally dependent on the banks prior to the financial crisis – this market has evolved and we now have pension funds and other institutional investors financing innovative funding platforms such as Sonovate, who are unlocking much needed cashflow for SMEs and mid-tier companies.”