Augmentum Fintech Reports Successful Fundraising for Tide, Zopa Bank, and iwoca

Augmentum Fintech, a prominent investor in the fintech sector, has reported successful fundraising developments for three of its portfolio companies: Tide, Zopa Bank, and iwoca.

Tide’s Growth and Expansion

Tide, a business banking platform that comprises 14.1% of Augmentum’s portfolio, has received an additional investment of £4.2m from the firm. The platform has managed to capture 10% of the UK small business market share with more than 550,000 customers.

In November 2022, Tide acquired Funding Options, the UK’s leading business credit marketplace, which received regulatory approval from the Financial Conduct Authority (FCA) in February 2023. This acquisition has expedited Tide’s credit offering by giving existing and new members access to over 120 lenders.

Tide has also made significant strides in its global expansion strategy. In December 2022, the company officially launched in India and plans to further expand throughout 2023. Currently, Tide has over 150,000 members in India.

Zopa Bank’s Fundraising Success

Zopa Bank, a digital-first bank that constitutes 11.9% of Augmentum’s portfolio, has announced it raised £75m of Tier 2 capital to spur its growth and expansion plans. This comes after the bank raised £75m of equity funding in Q1 2023, in which Augmentum participated.

The funds raised have been used to support Zopa Bank’s M&A strategy and to acquire DivideBuy, a Point-of-Sale platform, among other activities. Zopa Bank currently serves 1 million customers and has a target to reach 5 million by 2027. The bank anticipates achieving full-year profitability for the first time this financial year.

iwoca Secures New Debt Facility

iwoca, an SME lender that makes up 3.1% of Augmentum’s portfolio, has secured a new debt facility with initial commitments of £200m from Barclays Bank and Värde Partners. As per Augmentum, this funding line will enable iwoca to meet the increasing demand for working capital from SMEs, especially as UK high street lenders are withdrawing and reducing access to capital for these businesses. This comes as iwoca achieves net profitability for the fourth consecutive quarter.

Earlier this year, iwoca secured an increase and extension to its existing funding line with Pollen Street Capital – from £125m to £170m. With the new £200m funding line from Barclays and Värde, this takes the total debt commitments to over £850m.

In conclusion, Augmentum Fintech has made significant strides with its investments in Tide, Zopa Bank, and iwoca, as these companies continue to raise funds and expand their operations.