UK-based Lenkie Raises $62M To Transform Small Businesses Lending

UK-based fintech startup Lenkie has secured £49M ($62M) in a Series A funding round to transform business lending for SMEs in the country. 

The funding round, led by a large US private credit fund focused on supporting lenders internationally, includes £4 million ($5M) in equity and a £45 million ($57M) in debt facility.

The new funding will be used to improve its data-driven underwriting models, enabling small businesses to get faster approvals, expand partnerships with leading platforms, and explore new markets.

Lenkie’s Unique Approach to SME’s Cashflow Management

Founded in 2021 by Sanjeev Jeyakumar and Nnaemeka Obodoekwe, Lenkie has emerged as a promising solution to address the growing SME funding gap in the UK, estimated at a staggering £22 billion ($28 billion). As traditional banks retreat from business lending, the Cashflow management platform’s innovative approach to cashflow management and transaction-based financing aims to fill this void.

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The company’s unique selling point lies in its focus on payables financing, where it pays suppliers directly on behalf of SMEs at the beginning of a transaction. This approach ensures businesses can secure the necessary resources upfront to finance growth-related expenses, aligning with their immediate needs and growth cycles.

Meanwhile, Lenkie’s journey began when CEO Sanjeev Jeyakumar, a former Citigroup credit trader, saw the potential of real-time data in reducing financing risks for underserved markets. While managing over £2 billion ($2.5M) in loans across emerging markets, Jeyakumar witnessed firsthand the power of data-driven lending decisions.

“The challenge wasn’t a lack of growth opportunities; it was a broken borrowing experience. By removing friction and making access to capital effortless, we could unlock immense potential and help entrepreneurs realise their ambitions,” Jeyakumar said.

Lenkie leverages its proprietary underwriting technology and real-time performance data to deliver bespoke financing solutions quickly and efficiently.. By streamlining the approval process, the London-based platform helps hundreds of businesses secure funding more quickly and easily, giving them the support they need to scale.

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Since launching, the fintech company has demonstrated strong market traction, funding over £70 million ($89 million) to underserved SMEs and facilitating payments to 2,000 suppliers across 40 countries. 

Lenkie’s Ambitious Plan for The Future

The fresh funding will enable Lenkie to accelerate its mission of transforming SME financing in the UK. The firm plans to enhance its data-driven underwriting models, expand partnerships with leading platforms, and explore new markets. By leveraging real-time data and payments technology, Lenkie aims to eliminate the inefficiencies of traditional lending and reduce the risk of fund misuse.

As the SME finance landscape continues to evolve, Lenkie’s innovative approach to transaction-based cashflow management and financing solutions positions it strategically to address the growing funding gap. By providing fast, flexible, and tailored financing options, Lenkie is helping individual businesses grow and contributing to the overall economic growth of the UK by supporting its vital SME sector.

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With its fresh capital and ambitious expansion plans, Lenkie is poised to significantly shape the future of SME financing in the UK and potentially beyond. As the company continues to innovate and grow, it will be interesting to see how its impact on the SME lending landscape unfolds in the coming years.

Main Image: Lenkie’s co-founders Sanjeev Jeyakumar and Nnaemeka Obodoekwe. Image Credit: Lenkie