Lenkie Secures over £49M to Bridge UK's £22 Billion SME Lending Gap

London-based fintech startup Lenkie has recently secured £49 million  in a Series A funding round, marking a significant milestone in its mission to transform business lending for small and medium-sized enterprises (SMEs) in the UK. The funding round, led by a large US private credit fund focused on supporting lenders internationally, includes £4 million in equity and a £45 million debt facility.

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

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 that businesses can secure the necessary resources upfront to finance growth-related expenses, aligning with their immediate needs and growth cycles.

Lenkie's journey began when CEO Sanjeev Jeyakumar, a former Citigroup credit trader, recognized the potential of real-time data in reducing financing risks for underserved markets. While managing over £2 billion 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 explains.

Since its launch, Lenkie has demonstrated strong market traction, funding over £70 million to underserved SMEs and facilitating payments to 2,000 suppliers across 40 countries. The company's success can be attributed to its proprietary underwriting technology and use of real-time performance data, which enable it to deliver bespoke financing solutions quickly and efficiently.

Lenkie's approach to lending is built on a foundation of trust, as Jeyakumar emphasizes: "We're able to use data and technology to understand the nuances of each business to build that trust in seconds. This enables us to provide fast and flexible capital when it's most impactful."

The recent funding will allow Lenkie to accelerate its mission of transforming SME financing in the UK. The company plans to enhance its data-driven underwriting models, expand partnerships with leading platforms, and explore new markets1. By leveraging real-time data and payments technology, Lenkie aims to eliminate the inefficiencies of traditional lending and reduce the risk of fund misuse.

The impact of Lenkie's services on SMEs is evident in the testimonial of Ankit Monga from Mongas Kids Wear Limited: "At the heart of our business is the need to invest in stock, reach new customers, and improve supplier relationships. Lenkie's credit facility has been critical in enabling us to achieve all three."

As the SME finance landscape continues to evolve, Lenkie's innovative approach to transaction-based cashflow management and financing solutions positions it well to address the growing funding gap. By providing fast, flexible, and tailored financing options, Lenkie is not only helping individual businesses grow but also contributing to the overall economic growth of the UK by supporting its vital SME sector.

With its fresh capital and ambitious plans for expansion, Lenkie is poised to play a significant role in reshaping 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.

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