London-based fintech firm Selina Advance has scooped up $150m funding as it looks to roll out home equity lending products to customers across the UK.
The funding round, led by global private equity platform Lightrock, consisted of $35m in equity and $115m in debt from Goldman Sachs and GGC to allow the firm to ramp up its expansion across the UK.
Hubert Fenwick, Co-founder and CEO of Selina said: “We expect demand for Home Equity Line of Credit (HELOC) to rocket in the UK over the next five years as they become the first choice of finance for UK homeowners, our early traction shows the huge potential that exists in this market.
“HELOCs offer a new way for homeowners to finance and advance their lifestyle; perfect for those who have worked hard to build up equity in their property, enabling them to benefit by borrowing affordably and responsibly.”
Selina says it is using technology to unlock what is a “$30 billion market opportunity in the UK”.
The firm gained regulatory approval for consumer lending in 2020 and has already made over $100 million of loans with its home equity product in the UK.
HELOC is widely used in the US where the market is valued at $150 billion annually, but is so far yet to see the same level of takeup in the UK.
Ash Puri, Growth Investor, Lightrock, said that Selina was tapping into an underserved market.
He said: “Historically, homeowners across the UK have been underserved when it comes to accessing wealth created from their largest asset – their home.”
He hailed the “impressive growth” as one of the reasons for Lightrock’s investment