Lenkie Secures £49M Investment to Close £22B Funding Gap for UK SMEs

Lenkie Secures £49M Investment to Close £22B Funding Gap for UK SMEs

Lenkie, a UK-based FinTech innovator dedicated to enhancing cashflow management, has successfully secured £49 million in Series A funding. This investment aims to advance the company’s mission of improving capital access for small and medium-sized enterprises (SMEs).

Funding Details and Strategic Goals

The latest funding round includes £4 million in equity and a substantial £45 million debt facility, primarily led by a prominent US private credit fund that specializes in supporting international lenders. Lenkie highlights a significant trend: traditional banks have reduced their lending to small businesses, resulting in an estimated £22 billion funding gap.

Addressing the Funding Gap for SMEs

This reduction in traditional lending has amplified the demand for alternative financing solutions that empower SMEs to secure essential capital for their operations and growth. Lenkie offers a unique payables financing model, where the company directly pays suppliers on behalf of SMEs at the start of transactions. This innovative approach enables businesses to access necessary stock, materials, and services without depleting their cash reserves.

Data-Driven Lending Solutions

Lenkie stands out from conventional lending processes by utilizing proprietary underwriting technology and real-time performance data to accelerate approval times. This data-driven methodology effectively eliminates bottlenecks, ensuring that SMEs receive funding exactly when needed.

Impact Since Inception

Founded in 2021 by Sanjeev Jeyakumar and Nnaemeka Obodoekwe, Lenkie has already facilitated over £70 million in funding to underserved SMEs, making payments to more than 2,000 suppliers across 40 countries.

Vision for the Future

CEO and co-founder Sanjeev Jeyakumar emphasizes the company’s focus on building trust through data and technology: “At its core, all lending is built on a foundation of trust. We’re able to use data and technology to understand the nuances of each business to build that trust in seconds.” This commitment enables Lenkie to provide fast and flexible capital when it’s most impactful, fostering a new model of financial inclusion that aligns with modern business needs.

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Plans for Expansion

Looking forward, Lenkie intends to utilize the recent capital infusion to:

  • Enhance its data-driven underwriting models
  • Forge strategic partnerships with leading platforms
  • Explore expansion opportunities in new markets

By breaking down traditional barriers to financing, Lenkie aims to support the next wave of UK entrepreneurs and drive economic growth for SMEs across the country.

For more information on innovative financial solutions, visit Lenkie’s official website or learn about SME financing options from the Financial Conduct Authority.

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