Landbay, the low risk peer-to-peer lending platform focused on the UK buy-to-let mortgage market, has completed its first institutional funding round.
The company has raised £1.5 million (USD$2.35 million) which was led by an investment partner introduced by the alternatives investment manager Omni Partners LLP (“Omni”). Participation in the round also included an asset management company and an angel investor. This new funding will assist with Landbay’s next phase of growth.
In addition, Landbay has entered into a deal to help Omni develop its online alternative lending business, seeking to build on Omni and its affiliates’ expertise in the alternative lending market.
The news follows last week’s announcement that Landbay was appointed as the 9th member of the UK Peer to Peer Finance Association (P2PFA), alongside founding members Zopa, Ratesetter and Funding Circle. The P2PFA is actively involved in the Financial Conduct Authority (FCA)’s decisions regarding the future of the P2P sector and requires its members to operate by a strict set of rules in order to promote high standards of conduct and consumer protection, beyond those required by the FCA.
John Jenkins, speaking for Omni said:
“Omni and its affiliates have built a successful and well-established alternative lending business. We are always looking to identify interesting developments in the lending space for our investment partners. Landbay is a highly credible player that stands out in a burgeoning market. We liked the clarity of their strategy and the quality and experience that the management team bring to this fast growing space. We are confident in their ability to grow a successful business.”
John Goodall, cofounder and CEO of Landbay said:
“Our new investors bring a wealth of experience and scale in the secured lending and mortgage space – it was very important to us that this round was strategic and the synergies that are created by our partnership with Omni will greatly assist our goal of building a £1 billion buy-to-let mortgage book over the next 4 years.”