U.K.-based startup MarketInvoice has just secured a multimillion round of investment, a signal that venture capitalists are putting their faith behind the company’s unique business model.
According to reports on Sunday (Aug. 16), MarketInvoice secured nearly $9.4 million in funding from backers as the startup looks to expand their invoice financing services. The company provides a platform that uses an auction model to fund outstanding invoices. Companies can list their invoices on the site and their proof of sales, and investors can bid to front the bill.
MarketInvoice revealed the latest fundraising round, led by Northzone Venture Capital and Paul Forster, in the Sunday Times, reports said. The firm added that more than $780 million worth of invoices has already been funded on the platform since it launched in 2011. Last year alone, the firm said it facilitated nearly $300 million in funding.
Reports said that MarketInvoice has emerged as one of the more successful players in the marketplace lending industry that is taking off in the U.K. at the moment. The company partners with established financial institutions like KPMG and Sage in its efforts to increase funding to small and medium-sized enterprises.
The collaboration with KPMG was announced earlier this month when the auditor’s Small Business Accounting Service revealed plans to provide its clients with access to MarketInvoice financing straight through KPMG software.
MarketInvoice’s collaboration with Sage was revealed in July as a way for Sage to accelerate its presence in the U.K.
Late last year the platform said that it would be expanding its operations throughout Europe, though it remained mum on which exact markets it would be eyeing.