Funding Circle is expanding into Germany, Spain and the Netherlands, alongside its existing operations in the UK and US, following a deal with Zencap.
Over the last five years, Funding Circle has helped 12,000 businesses access more than $1.5 billion of finance in the UK and US. The market opportunity across continental Europe is larger than both the UK and US markets combined, with more than €1 trillion of outstanding loans for small businesses. As a marketplace for business loans in continental Europe , Zencap has experienced strong growth over the past 18 months with more than €35 million lent to approximately 520 businesses.
As part of the deal Zencap will now operate as Funding Circle across Europe. Launched by Rocket Internet in March 2014 the business will be led by Matthias Knecht and Christian Grobe, founders of Zencap.
Zencap recently announced a €230 million agreement with Victory Park Capital, who will lend through its marketplace. As an existing investor across Funding Circle’s UK and US businesses, the news will see Victory Park Capital become a global investment vehicle for marketplace lending.
Samir Desai CEO and co-founder of Funding Circle said: “Our vision is to help millions of businesses across the world sidestep the outdated and inefficient banking system and borrow from investors. Today’s news is the next exciting stage of this journey. We have been hugely impressed with what the Zencap team have achieved so far.
“By coming together we combine Funding Circle’s leading position in the UK and US with Zencap’s deep understanding of local markets to create the first truly global marketplace lending platform.”
Grobe, who will become co-founder and COO of Funding Circle in Continental Europe, said: “Our companies share one common mission: to create a better financial world. Today’s announcement sees us become a truly global player under the strong Funding Circle brand, allowing us to leverage synergies, professionalize processes and grow even faster.
“This is exciting news for millions of business owners in Europe and thousands of investors who will substantially benefit from these advantages in the short and medium term.”