2 November 2023
Augmentum
Fintech plc
Portfolio
Fundraising Update: Tide, Zopa Bank, iwoca
Augmentum
Fintech plc (LSE: AUGM) (“Augmentum” or the “Company”), Europe’s
leading publicly listed fintech fund, notes successful fundraising
developments at three of its portfolio companies: Tide, Zopa Bank
and iwoca.
Tide
The
Company has invested a further £4.2 million in Tide,
(www.tide.co,
14.1% of portfolio1),
the business banking platform, through a combination of primary and
secondary transactions.
Augmentum
first invested in Tide in August 2018
and with this latest investment the Company aims to capitalise on
the bank’s accelerating growth trajectory. Tide announced on 20
September that it has reached 10% market share of all UK small
businesses, with more than 550,000 customers
(“members”)2.
Tide acquired the UK’s leading business credit marketplace Funding
Options in November 2022, with
regulatory approval from the FCA in February
2023. The acquisition fast-tracked the company’s credit
offering by providing existing and new members access to over 120
lenders.
The past
year also saw Tide realise the first steps in its international
ambitions, as it officially launched in India in December
2022, expanding throughout 2023. Tide now has more than
150,000 members in India.
Zopa Bank
Zopa Bank
(www.zopa.com,
11.9% of portfolio1),
the digital-first bank, announced on 8 September that it has raised
£75 million in Tier 2 capital to further drive its growth and
expansion plans.
The financing follows £75 million of equity funding raised in Q1
this year, in which Augmentum participated, which the bank
used to
support its M&A strategy and to acquire Point-of-Sale
platform DivideBuy amongst other activities. Zopa Bank now serves 1
million customers and aims to reach 5 million by 2027. Zopa Bank
expects to hit full-year profitability for the first time this
financial year.
iwoca
iwoca (www.iwoca.co.uk,
3.1% of portfolio1),
the SME lender, announced on 17 October that it has secured a new
debt facility with initial commitments of £200 million from
Barclays Bank plc and Värde Partners. As the UK’s high street
lenders retrench and reduce access to capital for SMEs, this
funding line allows iwoca to meet the growing SME demand for
working capital. This comes as iwoca hits net profitability for the
fourth consecutive quarter.
In January this year, iwoca secured an increase and extension to
its existing funding line, with long-standing partner Pollen Street
Capital - from £125 million to £170 million. With the new £200
million funding line from Barclays and Värde this now takes the
total debt commitments to over £850 million.
Tim Levene, Augmentum Fintech CEO,
said:
“Amidst challenging macroeconomic conditions and geopolitical
uncertainty, these three key portfolio companies, which together
comprise nearly 30% of our total portfolio value, have not only
shown remarkable resilience but have also continued their upward
growth trajectory, as evidenced by their successful and substantial
funding rounds. From the time of our initial investment, these
businesses have undergone a transformative journey, growing from
employing fewer than 400 individuals and generating under £100
million in revenue, to now collectively boasting a workforce of
over 2,500 dedicated professionals and being on track to generate
upwards of £500 million in annual revenue. These companies have not
just survived; they have thrived, setting new industry standards
and driving positive change. We look forward to sharing a fuller
update to our shareholders in our interim results later this
month.”
Notes
1
Portfolio percentage values as at 31 March
2023.
2 Tide press
release dated 20 September
2023.
Enquiries
Augmentum
Fintech
Tim Levene
(Portfolio Manager)
Georgie
Hazell Kivell (Marketing and IR)
|
+44 (0)20
3961 5420
georgie@augmentum.vc
|
Quill
PR
Nick
Croysdill, Sarah Gibbons-Cook
(Press and
Media)
|
+44 (0)20
7466 5050
press@augmentum.vc
|
Peel
Hunt LLP
Liz Yong,
Luke Simpson, Huw Jeremy
(Investment
Banking)
|
+44 (0)20
7418 8900
|
Singer
Capital Markets
Harry
Gooden, Robert Peel, Alaina Wong
(Investment
Banking)
|
+44 (0)20
7496 3000
|
Frostrow
Capital LLP
Paul
Griggs (Company Secretary)
|
+44 (0)20
3709 8733
|
About Augmentum Fintech
Augmentum
invests in fast growing fintech businesses that are disrupting the
financial services sector. Augmentum is the UK’s only publicly
listed investment company focusing on the fintech sector in the UK
and wider Europe, having launched
on the main market of the London Stock Exchange in 2018, giving
businesses access to patient capital and support, unrestricted by
conventional fund timelines and giving public markets investors
access to a largely privately held investment sector during its
main period of growth.