UK FinTech Sononvate raises £110m
UK tech-provider the recruitment sector Sonovate has secured £110m in debt and equity finance.
The round was led by M&G Investments, MXB Holdings Inc, Dawn Capital and Rocket Internet SE.
This latest round of investment follows a Series B funding secured in October 2016, led by Global Founders Capital and supported by Dawn Capital.
Dawn also led Sonovate’s Series A funding round earlier that year.
Launched to challenge traditional invoice finance products on offer from the banks, Sonovate said it helps businesses working with contingent workers to unlock their growth potential.
It said traditional lending has been uncertain for SMEs since the 2008 financial crisis, and it hopes to reduce this complexity with upfront funding against unpaid invoices.
This funding is hoped will enable the company to advance its core product offering, and reach into new international markets.
The firm has funded almost £1bn of invoices for recruitment agencies, consultancies and on-demand vendors since it launched in 2012.
Richard Prime, Sonovate’s co-CEO, said: “The world of work is changing rapidly with more and more highly skilled individuals deciding to work on a more contingent basis.
“But businesses working with contract workers, including recruitment agencies and consultancy businesses, must pay their contractors multiple times before receiving payment from their clients, typically 45 to 90 days later.
“This severely impacts cash flow and poses a huge risk to businesses – Sonovate removes this burden and risk altogether.
“We’re on an incredible journey, consistently doing what the banks say isn’t possible.”
Josh Bell, General Partner at Dawn Capital, added: “Sonovate continues to provide game changing tech and finance options to the recruitment industry and contingent workspace. As a long-term investor in the company, we know there is huge potential for further growth ahead, particularly in entering new markets. This capital will play a vital role in helping the business to capture these opportunities.”