Just after Brexit, and the present state of relationship between Britain and Europe, London-based peer-to-peer small business financing platform Market Invoice has raised £7.2 million from a Poland based private equity company.
The round of investment was led by MCI Capital Group from their Tech Ventures Fund. The MCI investment is Market Invoice’s “Series B” round is the second addition to the institutional funding, after raising £6 million from Northzone last August. The group has also backed Sweden’s iZettle and UK money transfer startup Azimo in the past. Stockholm-headquartered venture capital firm Northzone, who already had invested in MarketInvoice, now increased its stake in the fintech company.
Market Invoice says the additional capital will be used for international expansion, consolidate its claimed position as the leader in invoice financing in the U.K., and for product development.
Market Invoice was set up in 2011 by three friends, with two of them, Stocker and Ilya Kondrashov, now driving the cart. The online marketplace works like an Ebay for invoices. It enables institutional investors – asset managers, family offices and high net worth individuals – to advance working capital to small businesses by buying their outstanding invoices, shortening the lag created by long-term payment terms. Of course, invoice factoring has been done for centuries, and MarketInvoice is minute compared to its banking competitors. In short, Market Invoice gives investors a new asset class. Invoice finance and other forms of P2P lending play into a narrative that has seen banks reluctant to lend to small and medium-sized businesses and interest rates at a historic low.