The P2P lending sector continues to attract investments after a strong year in 2014. Announcing a new round of funding today is UK-based RateSetter,which raised $29.6 million (£20 million). The funding round included participation from Artemis and Woodford Investment Management, as well as previous shareholders former Lazard investment banker turned fintech investor, Ken Costa and Charles Peel.
According to RateSetter, the $29.6 million in funds will be used to invest in their technology as well as to expand their operations through marketing and new hires. According to estimates used by the UK’s financial regulator, FCA, combined consumer and business P2P lending was nearly $2 billion during 2014 in the country, growing 170%. The rapidly growing market has also led it to become more competitive in the UK, where RateSetter competes against Zopa, Funding Circle and Assetz Capital.
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With $433.7 million (£293 million) in loans processed during 2014 for RateSetter, the firm was responsible for nearly 25% of the UK market in P2P Lending and has lent over $162.8 million (£110 million) so far in 2015. According to RateSetter, the performance has led them to become the only P2P lender in the UK to have achieved profitability.
Commenting on the news in the firm’s public statement, RateSetter Chairman, Alan Hughes said, “we are delighted to have raised investment from such well-respected institutions, vindicating our focus on attracting large equity investors that share our long-term vision.”