Funding Circle Completes Sale of US Business

Funding Circle Holdings plc has finalized the sale of its US business to iBusiness Funding, LLC (IBF). The transaction, initially disclosed on June 25th, was concluded on July 1st, 2024.

Lisa Jacobs, CEO of Funding Circle, stated that the sale aligns with the company's strategy to streamline operations and concentrate on profitable growth within the UK market. Jacobs expressed satisfaction with the plan's execution and indicated that the UK business is projected to be profitable in the second half of the year. Additionally, she mentioned expectations of a 15-20% CAGR in net income with pre-tax profit margins exceeding 15% over the medium term.

Funding Circle will now focus on enhancing its position as the UK's premier SME lending platform. The company aims to provide unparalleled access to funding for small businesses through data-driven technology, while offering institutional investors opportunities in an underserved market.