Funding Circle acquires German start-up Zencap
UK peer-to-peer lending platform intends to use purchase to bolster European expansion plans
Funding Circle, the leading UK peer-to-peer (P2P) lender, has purchased German competitor Zencap in a move to support its European expansion.
The start-up has bought Zencap – a P2P platform launched 18 months ago – from Berlin start-up incubator Rocket Internet for an undisclosed amount.
Rather than running Zencap as a seperate business, Funding Circle will rebrand it in an effort to target the start-up’s operations in Germany, Spain and the Netherlands.
Established in 2010 by Young Guns Samir Desai, Andrew Mullinger and James Meekings, London-based Funding Circle has grown to become one of the world’s biggest online business lenders and has facilitated over £500m worth of deals to date.
Last month, the company marked an industry first when it announced it would be tapping into the public market with plans to raise £150m on the London Stock Exchange; to invest into small and medium-sized businesses.
Funding Circle co-founder, Desai, said of the acquisition:
“Our mission is to help millions of small businesses across the world sidestep the outdated and inefficient banking system and borrow from investors. Today’s news is the next exciting stage of this journey.
“We have been hugely impressed with what the Zencap team have achieve so far [and want to] create the first truly global marketplace lending platform”.