Commerzbank ploughs more cash into London fintech startup Iwoca

Lynsey Barber
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Commerzbank is among existing and new investors to fund fintech star Iwoca (Source: Getty)

Commerzbank has ploughed more cash into London fintech startup Iwoca as part of a new multi-million pound round of funding for the lending platform.

The German bank's venture capital arm CommerzVentures are among investors in the £21m series C round after participating in last year's £15.7m series B.

New investor Prime Ventures led the latest round which brings total equity funding for the startup to £38m. Alongside Commerzbank, previous investors Acton Capital Partners, Global Founders Capital and Redline Capital also participated in the round.

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Five-year-old Iwoca lends to small businesses and was named one London's hottest fintech startups in the Fintech50 rankings earlier this year.

It has also raised £25m in debt financing led by Shawbrook.

The new cash will fund the startups ambitious growth in the UK and across Europe where it operates in Germany, Poland and Spain.

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"We've already been able to support 7,000 small businesses but we aim to finance at least a million customers over the next decade," said chief executive and co-founder Christophe Rieche.

"This investment gives us the firepower we need to achieve our mission."

CommerzVentures managing director Patrick Meisberger said: "Iwoca is fundamentaly transforming the lending landscape. It was an easy decision to participate in this round and we will continue to work closely with the management team to find innovative ways to support the ever-growing financing needs of small businesses. We see extraordinary growth ahead."