London-headquartered Lenderwize has raised €100 million in a new debt funding round. The company provides embedded finance solutions via an investor-driven marketplace to help telecommunications companies handle cash flow issues.
The mechanism allows investors to snap up digital commodities including voice, data, and digital content through the purchase of outstanding invoices, i.e. factoring. The investment will be used to push forward with international expansion plans including market entries in France, Germany, Spain, and the United States over the course of 2022.
The problem Lenderwize is addressing is as such: mid-sized telecom operators that sell to big operators must pay their vendors upfront, and wait for their clients to pay them in 60 days. They have clients, suppliers, margins, but not enough capital to fund their trades, and without funds on hand, they ultimately end up losing deals.
According to the company, through their network of investors and the working capital that can provide, they offer clients (Telcos) the opportunity to increase revenues by up to 50% and increase margins by up to 36%.
Employing a host of fintech tools, the Lenderwize platform provides investors with a dashboard that offers up proof of service by sharing data for each commodity such as call duration, origin, destination, and cost. Presumably anonymously. It verifies this data in real-time to validate the services rendered on each invoice.
Founded by former Swisscom executive Augusto Pellegrini and holder of various positions within the telco industry Lawrence Gilioli, Lenderwize’s €100 million loan is provided by alternative asset management firm Fasanara Capital.
“We have a successful track record with Lenderwize as its platform truly mitigates risk , while capturing a whole new asset class to invest into. Lenderwize is serving a huge addressable market in the telecommunications sector with a unique model and an innovative platform,” commented Fasanara’s CEO Francesco Filia.