Peer-to-peer lending networks are nothing new, but not all platforms are able to accommodate to individuals and investment groups separated by international borders. However, the global world of P2P lending doesn’t have to be so fragmented.
At least, that’s the goal for Funding Circle, the London-based peer-to-peer lending marketplace. Funding Circle announced Tuesday (Oct. 20) that it has officially acquired Zencap, a German-only lending network, to jumpstart expansion across Europe. Though Funding Circle is already up and running in the U.S. and the U.K., co-founder and CEO Samir Desai explained that leveraging Zencap’s experience will allow them to spread further than they ever have before.
“Our vision is to help millions of businesses across the world sidestep the outdated and inefficient banking system and borrow from investors,” Desai said in a statement. “Today’s news is the next exciting stage of this journey. We have been hugely impressed with what the Zencap team have achieved so far. By coming together we combine Funding Circle’s leading position in the U.K. and U.S. with Zencap’s deep understanding of local markets to create the first truly global marketplace lending platform.”
Funding Circle has managed to process a total of $1.5 billion in loans to more than 12,000 companies since launching in 2010. Though the service was envisioned as a facilitator of P2P loans, Funding Circle’s users have run the gamut from private individuals to commercial banks and even sovereign state governments.
Funding Circle expects to focus on cracking the markets of Spain, the Netherlands and Germany in the coming months. With the U.S. and U.K. already under its belt, Funding Circle may soon be able to back up its claim as the world’s first global lending marketplace with proven results.
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