iwoca receives €230 million to support SME loans

Financial technology company iwoca receives a €230 million funding line from Barclays and Värde Partners to meet growing demand for SME lending.

London/Frankfurt - Digital SME lending company iwoca has received a €230 million funding line from Barclays Bank PLC ("Barclays") and Värde Partners. This will enable iwoca to meet the growing demand for working capital loans for small and medium-sized enterprises (SMEs), which is often not met by traditional banks. The financing from Barclays and Värde Partners helps to meet the needs of small and medium-sized enterprises and to consider alternative financing options in the generally difficult market environment.

iwoca will provide funding of over 100 million euros in 2023 for our German customers alone. We are currently in the process of substantially expanding our funding lines for the German market again in order to meet the increasing demand in 2024 in Germany.

Fabian Platzen, General Manager of iwoca Germany

iwoca, founded in 2012, has since extended loans totaling €2.9 billion, of which more than €400 million was disbursed in Germany. In 2015, the company entered the German market and in the first three quarters of 2023 recorded its strongest growth to date since its launch. The company's loan book now stands at nearly €100 million, and iwoca has delivered consistent profits over the last four quarters.

According to iwoca's latest SME Index, 85 percent of financing experts surveyed say traditional banks are more restrictive in lending to SMEs. At the same time, 73 percent of experts expect demand for loans from SMEs to increase by the end of the year. The expanded refinancing line will enable iwoca to meet some of the growing demand from SMEs.

The new financing strengthens our position even more. It allows us to help small and medium-sized enterprises, which are the backbone of our economy, in a time of economic uncertainty. iwoca supports them with simple and flexible debt capital to develop and achieve their goals.

Christoph Rieche, CEO and Co-Founder of iwoca

iwoca was founded in London by Christoph Rieche from Germany and his business partner James Dear, with the aim of facilitating access to credit for the self-employed and small businesses. Since entering the German market in 2015, iwoca has grown into a major fintech loan provider specializing in the needs of smaller businesses.

Barclays Corporate and Investment Bank provides financing, strategy and risk management services and advice to asset managers, financial institutions, governments, supranational organizations and corporate clients. Värde Partners, on the other hand, is an investment firm specializing in loans and credit-related assets, founded in 1993. The firm has invested over $95 billion in credit and liquidity in public and private markets, with a focus on North America, Europe and Asia Pacific.