UK FinTech Revving Secures £107M to Transform Invoice Factoring in Digital Media
Revving, a prominent FinTech scale-up, is revolutionizing digital media payments with a substantial £107 million investment aimed at tackling cash flow issues in the UK adtech sector. This significant funding round, spearheaded by global asset management firm DWS, includes £100 million designated for debt financing to enhance liquidity within the digital economy.
Transforming Invoice Factoring in AdTech
Revving presents a technology-driven alternative to conventional invoice factoring, offering businesses in the adtech ecosystem quicker access to vital working capital. By integrating directly with digital marketplaces, Revving’s platform captures sales data, enabling early revenue access even before invoices are issued.
Addressing Extended Payment Terms
The newly acquired funding will empower Revving to address the long payment terms that can extend up to 120 days within the digital advertising industry. Over the next three years, the company plans to finance up to £1.8 billion for UK digital businesses. According to the Internet Advertising Bureau (IAB), this capital influx could result in an impressive economic impact of £8.6 billion, fostering growth and innovation.
Commitment to Eradicate Late Payments
Chris Pettit, CEO of Revving, highlighted the urgency of their mission, stating, “Over 50,000 UK businesses went under last year due to late payments. This strategic investment is a game-changer for Revving and the entire digital economy.” He emphasized that Revving has developed a sophisticated platform tailored to the digital economy, fundamentally transforming traditional invoice factoring.
The Cash Flow Crisis in the UK AdTech Sector
The UK’s adtech sector, valued at £129 billion and supporting over two million jobs, grapples with severe cash flow bottlenecks caused by prolonged payment cycles. The slow payment processes among publishers, agencies, networks, and affiliates create a domino effect that stifles growth and exacerbates financial pressure.
- Investment Amount: £107 million
- Debt Financing: £100 million
- Projected Financing: £1.8 billion for UK digital businesses
- Economic Impact: £8.6 billion according to IAB
A Vision for the Future
Vlado Spasov, head of capital solutions at DWS, remarked on Revving’s innovative approach, stating, “Revving’s focus on high-tech digital ecosystems and robust growth trajectory aligns perfectly with our commitment to supporting transformative financial solutions in the UK.” This investment signifies a pivotal evolution of private credit as it ventures into new and innovative digital sectors.
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