Wonga raises £73m investment
Loan site plans to expand UK market growth
Wonga, the online short-term loans company, has secured investment worth £73m in a series c funding round, it has been announced.
Launched in 2007 by Errol Damelin, Wonga provides users with a real-time platform to assess loan applications, rather than people, and instantly calculates the total cost of repayment based on the size of the loan.
The funding round was led by Oak Investment Partners, a global technology investment firm, with venture capitalists Meritech Capital Partners also investing. Existing backers Accel Partners, Balderton Capital, Dawn Capital, Greylock Partners and TAG also contributed finance. Wonga plans to use the investment to expand its UK market, which is one of the largest markets in the world for unsecured debt.
In a Wonga blog entry, Damelin said: “We have raised the money to secure our ability to continue growing strongly and to ensure we keep offering a premium service to our customers. We will keep investing in our technology platform and develop new ways of helping consumers manage their cashflow, based on our ability to make real-time and objective lending decisions.”
The company has attracted some criticism over its short-term cash advances, with rates of interest equating to around 3,000% a year based on the application form process.
However, since its launch Wonga has processed more than 1.8 million applications through its web and mobile phone applications and recently provided its one millionth customer loan.
© Crimson Business. Ltd 2011