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Funding Circle Limited: Empowering Micro Businesses and Fueling Growth in US Micro Lending Market

Funding Circle Limited is one of the leading players in the US micro-lending market with a global presence in countries like the United Kingdom, Germany, and the Netherlands. Funding Circle Limited has helped ~1,18,000 businesses worldwide with a loan distribution of $1.13 Bn.

STORY OUTLINE

  • The company recorded a revenue of $155 Mn in the year 2022 with a working strength of 1100 employees.
  • In 2022 alone the company allotted $2Bn amount of credit to small and medium-sized businesses.
  • Recently, the company raised $37 Mn of venture capital funding from another micro-lending institution named Accel Partners.

According to Ken Research: America is one of the world’s biggest markets for micro-lending with a significant market value. In America, there are a total of 80 Mn active customers in the micro-lending market which includes 50% of female clients. Funding Circle Limited is one of the market leaders in the US micro-lending market with a strong presence over the country. Currently, the company serves around 1,18,000 small and medium-sized businesses.

1.Overview of Funding Circle Ltd.

  • Funding Circle was founded in the year 2010 by three partners Sameer Desai, James Meekings, and Andrew Mullinger. The company offers products such as Business Loans and Commercial and Industrial Loans for small and medium-sized enterprises.
  • The company recorded a revenue of $155 Mn in the year 2022 with a working strength of 1100 employees.
  • The company’s headed by CEO Sameer Desai and it headquarter is located on Queen Victoria Street, London, United Kingdom.
  • The company spends 3% of its earnings on the CSR (Corporate Social Responsibility) fund annually.

US MICRO LENDING INDUSTRY

2.Funding Circle’s Position in US Micro Lending Market

  • Funding Circle Limited is one of the major players in the US micro-lending market. The company has distributed ~$19 Mn in small loan amounts to small and medium-sized enterprises across the country.
  • In 2022 alone the company allotted $2Bn amount of credit to small and medium-sized businesses which was a record for the company.
  • The company has ~$3 Bn outstanding loans under management globally and it has sustained ~1,00,000 jobs in 2022.

US MICRO LENDING MARKET

Click here:- Amount of credit provided by Funding Circle

3.Major Competitors of Funding Circle in the US Micro Lending Market

  • On Deck Capital Inc, American Express Kabbage Inc, LendingClub Bank, Zopa Bank Limited, Biz2Credit Inc., Lendio Inc., Bluevine Capital Inc., Fundera Inc. (NerdWallet), and StreetShares Inc are some of the major players of the US micro-lending market.
  • The American Express Company unveiled a line of financial service products for microbusinesses in 2022. The business has experienced tremendous returns of 70% over the past three years.
  • Lendio Inc. has unveiled a new mobile app with capabilities like access, analytics, and capital analysis to help small businesses.

US MICRO LENDING SECTOR

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4.Expansion of Funding Circle in the US Micro Lending Market

  • Recently, the company raised $37 Mn of venture capital funding from another micro-lending institution named Accel Partners. This funding circle is to grow the business in US micro-lending market and expand the range of products its offers.
  • In 2020. The company raised another $100Mn from several investors like Baillie Gifford, DST Global, Index, Ventures, Ribbit Capital, Rocket Internets, Sands Capital Ventures, and Temasek.
  • Funding Circle raised $65 Mn from its equity shares to further strengthen its international growth of marketplace lending.

Microfinance Industry in the US

5.Market Strategies of Funding Circle in the US Micro Lending Market

  • The target audience for Funding Circle is small and medium-sized enterprises that require frequent funds to support their business and other activities. The company has supported around 20% of country SMEs in 2022.
  • The company worked together with government agencies during the time of covid-19. The company helped many SMEs during the pandemic from the bankrupt situation and lends ~2 Bn loan amount in 2020 alone. It was one of the largest lenders during the pandemic under the CBILS (Coronavirus Business Interruption Loan).
  • The company is planning to diversify its customer base as it has announced to distribute loans to individual proprietors, medical patients, and farmers from next year.

Micro Lending Market forecast

Conclusion

Within the dynamic landscape of US micro-lending, Funding Circle has developed as a frontrunner, encouraging the desires of small and medium-sized ventures. With an exceptional presence crossing nations and a commitment to corporate social responsibility, Funding Circle’s journey is stamped by development and impact. The company’s considerable loan distribution of $1.13 billion to over 118,000 businesses globally stand as a confirmation of its viability. As Funding Circle proceeds to grow its impression and offerings, its collaboration with government offices amid the pandemic and plans to expand clientele highlight its part in driving financial flexibility. With visionary leadership beneath CEO Sameer Desai, Funding Circle’s commitment to businesses’ development and well-being is reshaping the forms of micro-lending, cultivating a flourishing environment for business people over the United States.

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