British revenue-based financing (RBF) company Outfund plans to invest £500 million ($627 million) of lending to over 5,000 businesses in the next 12 months.
According to multiple published reports Wednesday (April 27), this announcement follows the recent completion of Outfund’s £115 million ($144 million) Series A round.
In addition, the company plans to use the funds to lend more capital to borrowers, raising the maximum lend per small business to £10 million. The funding means that Outfund is now the largest revenue-based finance firm in the U.K., Spain, and Australia.
“Our ambition is for Outfund to be the place to go to grow your business, without compromising your equity or wasting time fundraising,” said Daniel Lipinski, the firm’s founder and CEO.
“This is why we have spent time developing a way to make the process of securing money for growth easier, fairer and, most importantly, faster. Our approach has been warmly received by the founders and directors so far, and now we’re looking at how we can open this up to more businesses and continue to be part of their journey to success for a long time.”
Founded in 2020, Outfund is an alternative investment platform that focuses on venture capital funds and bank loans to invest in businesses such as eCommerce, Software-as-a-Service (SaaS) and retail.
Outfund can loan give between £10,000 ($12,500) and £10 million ($12.5 million) of funding, available to businesses that take online payments. These companies should have at least £10,000 monthly turnover, and have been trading for at least six months.
Earlier this month, PYMNTS spoke to Ahmad Coucha, co-founder and CEO of Cairo-based revenue-based finance firm FlapKap.
While RBF has become popular in the developed world, it remains relatively novel in regions like the Middle East and North Africa (MENA), where Coucha claims that FlapKap is the first business of its kind.
“Our AI solution helps us to understand the client’s accounting processes, spending patterns and the correlation with the sales to determine if they have the potential to grow if there is an increase in their ad spend — one of the bulkiest expense items for firms,” he said.