Borro raises £13m to fund growth of online lending platform
Platform allows its customers to borrow against luxury assets such as art, prestige cars and fine wine
Luxury asset-backed lending online platform Borro has raised £13m in a funding round led by OurCrowd and Rocket Internet, pushing its total capital raised to more than £130m.
More than £4m of the capital came from OurCrowd with Rocket Internet increasing its stake in the company to 10%. Existing investors Canaan Partners, Eden Ventures, and Augmentum Capital also participated in the round.
Launched in the UK in 2009, Borro’s unique lending platform allows individuals, entrepreneurs and business owners to use luxury assets – fine art, antiques, jewellery, luxury watches, fine wine, prestige and classic cars – as collateral for loans. Following its expansion into the US in 2009 the company has extended approximately £120m in luxury asset-backed loans since inception.
The funding will be used to fuel the platform’s long term growth as it expects to see exponential increase in lending volume over the next two years. Borro raised £74m from Victory Park Capital in 2014 to expand its pool of capital to lend to clients.
Borro founder and CEO, Paul Aitken, said of the major investmetn: “This funding will enable us to accelerate our growth in our core US and UK businesses. We will continue to grow through our already successful partnership channels as well as our expansion into new product areas.”
Jon Medved, founder and CEO of OurCrowd, continued: “In less than two years, OurCrowd went from participating in early seed rounds, to now leading a £13 million funding round together with global venture capital firms such as Canaan and renowned internet company, Rocket Internet.
“Working with Borro marks the single largest equity crowdfunding round ever completed and demonstrates how equity crowdfunding can complement traditional funding sources. We are thrilled to be investing in quality companies like Borro that are redefining the FinTech industry.”