London-based fintech company Lenkie has raised €62.2 million in Series A funding to transform how UK businesses access capital. This funding round comprises €5 million in equity and a €57.2 million debt facility, backed by a leading US private credit fund specializing in international lending.
Empowering SMEs with Fast and Flexible Financing
Lenkie, founded in 2021 by Sanjeev Jeyakumar and Nnaemeka Obodoekwe, is reshaping business financing by offering fast, transaction-based funding solutions. By leveraging real-time data and payment technology, Lenkie provides capital to SMEs at crucial moments, eliminating the inefficiencies of traditional lending models.
CEO and Co-founder Sanjeev Jeyakumar emphasized the role of technology and trust in modern lending:
“At its core, all lending is built on a foundation of trust. We use data-driven insights to assess businesses instantly, allowing us to provide capital exactly when it’s needed. By financing specific transactions, we’re creating a new model of financial inclusion tailored to how modern businesses operate and grow.”
Bridging the UK’s SME Financing Gap
According to Lenkie, the UK is experiencing a €27.9 billion SME funding gap as banks scale back business lending. This creates significant challenges for small businesses, which often require upfront capital for stock, subcontractor payments, and equipment before generating revenue.
Lenkie’s innovative payables financing model pays suppliers directly on behalf of SMEs at the start of a transaction, ensuring they have the resources to support growth-related expenses.
“The challenge wasn’t a lack of growth opportunities; it was a broken borrowing experience. By removing friction and making access to capital effortless, we unlock immense potential for entrepreneurs,” added Jeyakumar.
Funding Success and Market Impact
Since its inception, Lenkie has funded over €89 million, facilitating payments to 2,000 suppliers across 40 countries. Its proprietary underwriting technology enables fast approvals and personalized financing solutions, empowering SMEs with seamless borrowing experiences.
Lenkie’s approach aligns with shifting market trends, where demand for alternative financing solutions is at an all-time high. SMEs drive 60% of UK employment and contribute 50% of GDP, yet many remain underserved by traditional lenders. Lenkie aims to close this gap by offering cost-effective financing that adapts to real-time business needs.
Industry Endorsements and Future Growth
Entrepreneurs benefiting from Lenkie’s financing model have praised its impact on business expansion. Ankit Monga, CEO of Mongas Kids Wear Limited, highlighted the importance of Lenkie’s credit solutions:
“At the heart of our business is the need to invest in stock, reach new customers, and strengthen supplier relationships. Lenkie’s credit facility has been crucial in enabling us to achieve all three. Their outstanding service and continuous product innovations ensure an excellent user experience.”
Lenkie’s growth trajectory is set to accelerate further with this latest funding round, allowing the company to expand its financing capabilities and support more UK businesses in their scaling journey.
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