Losses have almost doubled at fintech unicorn and lending platform Funding Circle, City A.M. understands.
The peer-to-peer lending group is set to post a full-year loss of £36m when it publishes its accounts on Tuesday, after expanding into Europe and the US ate into profits.
However, revenues at the firm, which was founded in 2010 and has lent more than £1.5bn to small and mid-sized businesses, rose 140 per cent from £13m to £32m last year.
“We are pleased with the performance of the Funding Circle Group in 2015 which is in line with targets set at the beginning of the year,” said chief executive Samir Desai. “We expect our UK business to be profitable in the fourth quarter of 2016 and to generate significant cashflow in 2017 to finance international operations.”
In 2015 the company raised $150m (£116m) of new equity for the business and listed the first and only single platform investment trust – the £150m Funding Circle SME Income Fund – on the London Stock Exchange.
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Funding Circle is the third biggest lender for small businesses in the UK, behind only RBS and Lloyds.
It passed the milestone of lending £1bn in December last year and in April was the first lender to bring securitisation to the peer-to-peer market with backing from the European Investment Fund, and KfW, a German government-backed bank.