Borro, an online platform for luxury asset-backed lending, today announced it has raised $19.5 million in funding, led by OurCrowd and Rocket Internet.
Borro is a leader in the alternative lending sector, which is one of the fastest growing segments of the Financial Technology sector. This funding will be used to fuel Borro's continued, rapid growth across the US and the UK.
Borro powers a unique platform for offering fast and efficient loans, where individuals, entrepreneurs, and business owners can use luxury assets --including fine art, antiques, jewelry, luxury watches, fine wine, prestige and classic cars -- as collateral for loans. Borro launched in the UK in 2009, the U.S. in 2012, and has extended close to $200 million in luxury asset-backed loans since its inception.
"This funding will enable us to accelerate our growth in our core US and UK businesses. We will continue to grow through our already successful partnership channels as well as our expansion into new product areas," said Paul Aitken, founder and CEO of Borro.
Over $6 million of the capital invested came from OurCrowd, the leading equity crowdfunding platform for accredited investors. Rocket Internet increased its stake in Borro to 10 percent, and existing investors Canaan Partners, Eden Ventures, and Augmentum Capital also participated in the funding round.
"In less than two years, OurCrowd went from participating in early seed rounds, to now leading a $19.5 million funding round together with global venture capital firms such as Canaan and renowned internet company, Rocket Internet," said Jon Medved, founder and CEO of OurCrowd. "Working with Borro marks the single largest equity crowdfunding round ever completed and demonstrates how equity crowdfunding can complement traditional funding sources. We are thrilled to be investing in quality companies like Borro that are redefining the FinTech industry."
"Financial Technology is one of the most attractive and fastest growing online sectors and continues to be a key focus sector for Rocket Internet," said CEO of Rocket Internet Oliver Samwer. "The financial services sector is ready for major disruption by innovative online companies. Borro is clearly one of them and with our investment we underline our belief in the company's highly promising development and expansion potential."
With this funding, Borro will fuel long-term growth and aims to exponentially increase its lending volume over the next couple years. In 2014, Borro raised $112 million of debt from Victory Park Capital to expand its pool of capital to lend to clients. This round pushes Borro's total capital raised to over $200 million.
Financial Technology Partners LP and FTP Securities LLC (together "FT Partners") were the exclusive advisors to Borro on this transaction.