Portfolio Fundraising Update: Tide, Zopa Bank, iwoca
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.
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