Spotcap, a Rocket Internet fintech startup, is launching in the UK after it raised €31.5 million earlier this year to fuel its growth.
The online lending service provides short term loans for SMEs who usually have difficulties in getting financing, according to the company. Its algorithm has been designed to analyse the financial state of a small business and decide if it is suitable for a loan.
Jens Woloszczak, CEO of Spotcap, said expanding into the UK was important regardless of the uncertainties surrounding Brexit.
“There is no financial district in Europe like London, and Brexit will not change that. British SMEs are resilient and opportunistic which is why there is significant scope for Spotcap in the UK,” said Woloszczak. It obtained a license from Financial Conduct Authority (FCA) in the UK over a year ago.
"As a business, we are confident that the underlying dynamics of the economy are unchanged, in fact we believe capital will be needed to make the most of opportunity in turbulent times," he said.
“SMEs need flexible and accessible financial solutions to navigate times of economic uncertainty, we look forward to working with them to drive the British economy forward.”
Spotcap is currently available in three other countries – Spain, The Netherlands, and Australia – and has issued more than €50 million in credit lines since launching two years ago. Spotcap chooses its locations based on where it sees a need for alternative funding solutions, explained Woloszczak.