Decisioning platform Funding Xchange raises £8m
Business loan and funding quote marketplace Funding Xchange (FXE), the decisioning platform which powers Monzo, Experian and MoneySuperMarket, has closed £8 million in a funding round.
Led by Downing Ventures and Gresham House Ventures, the UK-based start-up’s funding round will allow it to continue expanding its services to banks and alternative lenders which formulate funding quotes in less than four minutes and deliver funds in less than ten.
Former dairy farmer Katrin Herrling set up the company after the financial crisis saw her farm’s borrowing rates rocket, persuading her to create more funding options for small and medium enterprises (SMEs).
Experian executives Max Firth and Paul Henry joined the start-up over the last year
FXE’s white label ‘lending in a box solution’ digitises steps in the underwriting process, and Herrling believes it address the gap in SME lending.
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In a bid “to help reshape a sector that is rapidly adopting digital solutions”, Herrling calls the recent funding in her start-up “the opportunity to provide small businesses with the same transparency and ease of access to finance that consumers have become accustomed to”.
Experian executives Max Firth and Paul Henry joined the start-up over the last year, pushing it into providing decisioning solutions to banks and lenders as well as improving the delivery of data analytics.
Downing Ventures investor Daniel Cheung believes FXE is responding “to some of the biggest challenges that banks and SME lenders face as the market is undergoing unprecedented change”.
With “new lenders and solutions changing the market dynamics”, the availability of new data and increasing regulatory scrutiny, Cheung is impressed by FXE’s data-driven approach.
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