Fast-growing FinTech star ACORN OakNorth Holdings has raised $100 million from a host of investors to continue its UK expansion and scale globally.
The capital came from the EDBI of Singapore, NIBC Bank, Clermont Group, GIC, and Coltrane Asset Management and values the business at $2.3 billion.
London-based OakNorth is a bank run by entrepreneurs for entrepreneurs. Its target market for loans is the 15 per cent of businesses which are fast-growing and profitable rather than all SMEs.
OakNorth claims to have doubled its loan book to $2.2 billion since the start of 2018 and expects to lend a further $600 million this year.
The FinTech estimates its loans have directly helped create 8,000 new jobs in the UK.
The money will be used to drive the growth of its ACORN machine FinTech platform, which is expected to have more than $5 billion in assets under service by the end of 2018.
Richard F. Chandler, chairman of Clermont Group, said: “The Clermont Group is delighted to continue its support of ACORN OakNorth. We believe it has the potential to become a globally scalable business and a future champion in the financial services sector.
“By providing capital to the underserved SME segment, ACORN OakNorth reflects the Clermont Group’s philosophy of building and investing in companies that contribute significantly to their nation’s economy.”
The deal was also hailed by EDBI of Singapore CEO Chu Swee Yeok and NIBC Bank boss Paulus de Wilt.
“By leveraging machine learning, proprietary and third-party data sources, as well as credit analysis competencies, we believe the platform can help address the underserved SME loans segment in the region, improving financial institutions’ cost efficiency and underwriting processes,” Chu Swee Yeok said.
Wilt added: “The platform will enhance our efficiency and insights with regards to credit analysis and monitoring, thus enabling us to even better serve our mid-market clients. This collaboration will strengthen NIBC’s tech-based approach and preparation for the future.”