Augmentum Fintech, the London-based VC, has announced its second investment of the week, injecting £7.5 million into challenger small business lender Iwoca.
Iwoca told Growth Business that Augmentum’s investment is part of a much bigger Series D fund raise to be announced in early February.
The SME lender, which offers credit facilities to small businesses across Britain, Germany and Poland, has raised just under £50 million in equity funding so far. Existing investors include Etsy-backer Acton Capital Partners, the venture arm of Commerzbank and Prime Ventures among others.
Launched in 2012, Iwoca employs a team of 70 staff at its headquarters in central London. It has funded more than 25,000 SMEs to date.
On Tuesday Augmentum Fintech was announced as part of a funding round investing £7.5 million in digital will writing service Farewill. Co-investors included Taavet Hinrikus, CEO and co-founder of Transferwise, and dmg ventures, the venture capital arm of the Daily Mail.
Augmentum chief executive Tim Levene said of its Iwoca investment: “Whilst there are many companies attempting to address SME lending, few have a credit product as advanced as Iwoca.
“We believe their industry-leading analytics and technology set them apart from other lenders and give them a competitive advantage others will find hard to replicate. We are confident that Iwoca will emerge as one of the winners in the SME space.”
Augmentum, which launched on the main market of the London Stock Exchange in 2018, is the only fintech-focused venture capital firm in Britain.
Last September, Augmentum participated in a $60 million Series B funding round for fintech current account provider Monese alongside Swedish investor Kinnevik, International Airlines Group and Investec’s INVC Fund.